Does the auditor make use of analytical procedures to provide assurance for the year-end accounts?
Analytical procedures carried out during the year will help to provide assurance on the accuracy and completeness of financial data used to prepare the year-end accounts. They are also used to identify unusual relationships and items in the accounts. Auditors can use various analytical procedures during the year. These procedures include: • simple comparisons comparing budget to actual for the current year; • trend analysis, comparing one year with other years; • ratio analysis, comparing one account item to another; and • predictive analysis, forecasts information to compare with actual data. Procedures that compare the effect of transactions to date against budget or other expectations can identify problem areas as they emerge during the year. This will provide an opportunity for the auditor to reallocate resources if needed and also for the public body to take corrective action promptly. Predictive techniques can provide assurance where there are a series of variable factors and tra
