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Hi, Kim, hope you are fine
could you please tell me the differences between analytical procedure/audit procedure/substantive procedure?
Yes thank you!
See here my reply to a very similar post https://opentuition.com/topic/audit-substantive-analytical-procedures
Thank you, I have already seen that post, but there are two further questions that, why there should be an analytical procedure at the planning stage? what the analytical procedure at the planning stage for?
See at the top of page 53 of the notes:
The audit plan describes the nature, timing and extent of:
o Risk assessment procedures (ISA 315 Identifying and Assessing the Risks of Material Misstatement) [1]
o Further audit procedures at the assertion level (ISA 330 The Auditor’s Response to Assessed Risks) [2][1] includes but is not limited to analytical procedures (see s.3.2 on page 54)
[2] = TOC + substantive procedures (including substantive analytical procedures)Although analytical procedures are in essence the same whenever they are performed, their purpose and how/on what they are done, will depend on the stage of the audit – see page 73 of the notes. For risk assessment (“planning” stage) – the auditor will have only draft/projected financial statements – but for review stage the financial statements should be close to final.
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