PACC6002 Auditing and Assurance Services
Referencing Styles : APA
You have learned that ASA 315 stipulates analytical procedures be used as risk assessment procedures, while ASA 520 stipulates their use as substantive procedures. The standards also discuss the nature and purpose, extent of reliance on analytical procedures and subsequent investigation of unusual items identified.
Using the financial report/statements of the company that your Group Assignment and Presentation has chosen:
a) identify and briefly explain two (2) ways you could use analytical procedures as risk assessment procedures, and
b) identify and briefly explain two (2) ways you could use analytical procedures as substantive procedures during the audit.
This requires you to use the material from your chosen company to illustrate the application of ASA 315 and ASA 520, using Analytical Procedures to the audit process. You are asked to provide examples from the financial statements to support your explanation.
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