Canadian Auditing Standards (CAS 315 and CAS 520) require analytical procedures at all stages of the audit. Preliminary analytics are performed at the risk assessment phase to identify balances that require an audit response. Substantive analytical procedures are a powerful tool in obtaining sufficient appropriate audit evidence. Final analytics are performed during the completion phase of engagement to ensure all risks have been addressed.
CAS 520 sets out the requirements in performing substantive analytics in a 5-step approach. Using case studies and practical examples, this course will address how to perform and document each step including understanding the various types of analytical procedures, determining their suitability, developing expectations and investigating differences. The course will also illustrate preliminary and final analytics along with guidance and ideas on how to perform and document in an efficient and effective manner saving time on engagements.
By the end of the session, participants will be able to:
- Appreciate CAS requirements related to analytical procedures
- Implement an efficient approach for performing preliminary and final analytics
- Explain the difference between substantive analytical procedures and variance analysis
- Identify and understand how to apply different types of analytical procedures
- Know how to implement the 5-step approach
- Develop a process for setting expectations
- Document procedures performed and conclusions reached
- Identify and overcome barriers in performing analytical procedures