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ISA 520 — Analytical Procedures

ISA 520 is an international pronouncement addressing substantive analytical procedures and the overall analytical review near the end of the audit. It concerns using analytical procedures as substantive procedures and near the end of the audit to form an overall conclusion. An expectation must be sufficiently precise when used substantively, and significant unexpected differences require investigation and appropriate evidence.

Worked example

The auditor develops a payroll expectation and investigates a material unexplained difference.

Common mistake

A broad comparison with last year is not automatically precise enough to serve as a substantive analytical procedure.

Where it appears in your exams

QualificationExamRelationshipPeriod
ACCA AA Supporting September 2026–June 2027
ACCA AAA (INT) Supporting September 2026–June 2027