(Ref: Para. 5 ) …

The auditor may enquire of management as to the availability and reliability of information needed to apply substantive analytical procedures, and the results of any such analytical procedures performed by the entity.  It may be effective to use …

Suitability of Particular Analytical Procedures for Given Assertions (Ref: Para. 5(a) ) …

Substantive analytical procedures are generally more applicable to large volumes of transactions that tend to be predictable over time.  The application of planned analytical procedures is based on the expectation that relationships among data exist and …

In some cases, even an unsophisticated predictive model may be effective as an analytical procedure.  For example, where an entity has a known number of employees at fixed rates of pay throughout the period, it may be possible for the auditor to use this …

Different types of analytical procedures provide different levels of assurance.  Analytical procedures involving, for example, the prediction of total rental income on a building divided into apartments, taking the rental rates, the number of apartments …

The determination of the suitability of particular substantive analytical procedures is influenced by the nature of the assertion and the auditor’s assessment of the risk of material misstatement.  For example, if controls over sales order processing are …

Particular substantive analytical procedures may also be considered suitable when tests of details are performed on the same assertion.  For example, when obtaining audit evidence regarding the valuation assertion for accounts receivable balances, the …

A risk of material misstatement may relate to more than one assertion, in which case all the assertions to which such a risk relates are relevant assertions. If an assertion does not have an identified risk of material misstatement, then it is not a …

Considerations Specific to Public Sector Entities …