Analytical procedures used in planning an audit should focus on identifying?

0
302
time, time management, stopwatch @ Pixabay

The auditing process is an analytical procedure that should focus on identifying the appropriate audit objectives and assessing their risks. There are many reasons why only an auditor can do it. For one, a company’s management may not be able to distinguish between frauds and errors in financial statements caused by mistakes or even well-intentioned actions.

analysis, analytics, business @ Pixabay

A company’s management may also lack the time to perform certain tasks necessary for effective audits such as analyzing complex accounting issues, reviewing significant transactions, and evaluating internal controls over compliance with laws and regulations. The auditing process is an analytical procedure that should focus on identifying the appropriate audit objectives and assessing their risks. There are many reasons why only an auditor can do it.

For one, a company’s management may not be able to distinguish between frauds and errors in financial statements caused by mistakes or even well-intentioned actions. A company’s management may also lack the time to perform certain tasks necessary for effective audits such as analyzing complex accounting issues, reviewing significant transactions, and evaluating internal controls over compliance with laws and regulations.

The result of this complexity often leads companies away from required governance procedures which could have been easily avoided if they had just hired qualified professionals who could analyze those types of situations properly. 

LEAVE A REPLY

Please enter your comment!
Please enter your name here