Course Overview

Are you fully leveraging the power of analytical procedures? Many auditors perform these procedures merely as a formality, resulting in missed opportunities to enhance audit quality and efficiency. According to ISA 315 and ISA 520, analytical procedures must be conducted during the risk assessment phase and at the finalisation of the audit. When properly applied, analytical procedures are powerful tools to assess risks, obtain audit evidence, and reduce audit work.

This course explores the true potential of analytical procedures and offers practical insights into how to perform and document them effectively. Participants will learn how to avoid common pitfalls, enhance audit quality, and optimise their audit processes by reducing sample sizes and unnecessary work.

This course offers a mix of theory and practical application, with real-world case studies and hands-on exercises to ensure participants can effectively apply, interpret, and document analytical procedures throughout the audit process.

Course Content

• What Are Analytical Procedures?
• Defining analytical procedures and their role in audit
• Understanding the objectives and benefits of analytical procedures
• Types of Analytical Procedures
• Ratio analysis, trend analysis, and reasonableness tests
• Industry benchmarks and comparisons with forecasts and budgets
• What Analytical Procedures Provide the Strongest Evidence?
• Identifying high-quality analytical procedures to obtain reliable audit evidence
• Integrating analytical procedures into substantive testing
• Why Perform Preliminary Analytical Procedures?
• Role of analytical procedures during risk assessment
• How to use them to identify high-risk areas early in the audit
• Using Analytical Procedures to Reduce Audit Work and Sample Sizes
• Leveraging analytical insights to streamline audit procedures
• How effective analytical procedures can minimise the need for extensive sampling
• What Is the Purpose of the Final Analytical Review?
• Evaluating consistency and completeness of the financial statements
• Ensuring that no material misstatements have been overlooked
• Common mistakes auditors make with analytical procedures
• Best practices for proper documentation in accordance with ISA 520

Who Should Attend

• Auditors
• Audit Managers
• Audit Partners
• Third-year SAICA trainees
• Fourth-year SAICA trainees
• Fifth-year SAICA trainees
• Engagement Quality Control Reviewers