Analytical Review – The 5-Step Approach
Canadian Auditing Standard (CAS) 520 is very prescriptive in its requirements related to performing analytical procedures but often practitioners are not sure of the actual requirements and how to apply them. Performing substantive analytics is a powerful auditing procedure and when done right can identify material misstatements.
This course provides an overview of the 5-step approach as outlined in CAS 520 and how to apply in an audit engagement. The methodology can also be used in review engagements as the requirements for performing analytical procedures for these types of engagements is similar. Using case studies and practical examples, we will walk through how to apply the 5-step approach in a practical manner. We will also various types of analytical procedures, how to set expectations and documentation approaches.
The course will also discuss preliminary and final analytics along with guidance and “tips” on how to perform and document in an efficient and effective manner ultimately saving time on engagements.
This course uses case studies, practical examples and various techniques on approach.
By the end of the session, participants will be better able to:
• Understand the CAS requirements related to substantive analytical procedures
• Explain the difference between substantive analytical procedures and variance analysis
• Implement an efficient approach for performing preliminary and final analytics
• Develop a process for setting expectations
• Identify the various types of analytical procedures available
• Document the procedures performed and the results efficiently
• Improve questioning techniques
• Apply the appropriate procedures as necessary and evaluate the results