Includes: Substantive Analytical Procedures, Analytical Procedures that Assist When Forming an Overall Conclusion, Investigating Results of Analytical Procedures

Substantive Analytical Procedures


When designing and performing substantive analytical procedures, either alone or in combination with tests of details, as substantive procedures in accordance with ASA 330,[3] the auditor shall: (Ref: Para. A4-A5)

  1. Determine the suitability of particular substantive analytical procedures for given assertions, taking account of the assessed risks of material misstatement and tests of details, if any, for these assertions; (Ref: Para. A6-A11)
  2. Evaluate the reliability of data from which the auditor’s expectation of recorded amounts or ratios is developed, taking account of source, comparability, and nature and relevance of information available, and controls over preparation; 
    (Ref: Para. A12-A14)
  3. Develop an expectation of recorded amounts or ratios and evaluate whether the expectation is sufficiently precise to identify a misstatement that, individually or when aggregated with other misstatements, may cause the financial report to be materially misstated; and (Ref: Para. A15)
  4. Determine the amount of any difference of recorded amounts from expected values that is acceptable without further investigation as required by paragraph 7 of this Auditing Standard.  (Ref: Para. A16)

Analytical Procedures that Assist When Forming an Overall Conclusion


The auditor shall design and perform analytical procedures near the end of the audit that assist the auditor when forming an overall conclusion as to whether the financial report is consistent with the auditor’s understanding of the entity.  (Ref: ParaA17-A19)

Investigating Results of Analytical Procedures


If analytical procedures performed in accordance with this Auditing Standard identify fluctuations or relationships that are inconsistent with other relevant information or that differ from expected values by a significant amount, the auditor shall investigate such differences by:

  1. Enquiring of management and obtaining appropriate audit evidence relevant to management’s responses; and
  2. Performing other audit procedures as necessary in the circumstances. (Ref: Para. A20-A21)


See ASA 330, paragraph 18.