№ files_lp_4_process_3_083803
Appendix to professional auditing guidance describing analytical procedures and illustrative detailed steps considered by auditors when conducting a review engagement of a financial report and assessing risks of material misstatement.
Document section: Appendix 2 (Ref: Para. A20)
Subject area: Financial reporting review and auditing procedures
Topic: Analytical procedures in a review engagement
Document type: Appendix / professional guidance text
Professional field: Auditing and financial reporting
Primary actors: Auditor, engagement team, entity management, those charged with governance
Purpose: Description of analytical and enquiry procedures considered during a review of a financial report
Key elements: Comparison of financial information, ratio analysis, enquiry of management, review of internal controls, assessment of compliance with laws and regulations
Processes described: Analytical review, risk assessment, evaluation of accounting policies, examination of meeting minutes, verification of financial data consistency
Financial elements referenced: Revenue, receivables, cash accounts, assets, liabilities, ratios, budgets and forecasts
Industry context: Entities preparing financial reports within an applicable financial reporting framework
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