What are analytical procedures and their benefits?
By Jackie McLaughlin, CPA
Analytical procedures are beginning to become more prevalent in the audit world. They provide auditors with many benefits. But are those benefits known?
Learn how to streamline analytical procedures here
Simply stated, analytical procedures compare recorded amounts or ratios developed from client data to EXPECTATIONS developed by the auditor. It is these auditor developed expectations that are the cornerstone to success.
Analytics are evolving to become such an important tool that Journal of Accountancy stated, “…mastery of data analytics can help businesses generate a higher profit margin and gain a meaningful competitive advantage. Some experts even predict that companies ignoring data analytics may be forced out of business in the long run.”