[zonast]

Getting a little confused distinguishing Analytical Procedures from Substantive Procedures and how they are interchangeable. If they are, also am I correct that AP’s can be SP’s, but SP’s are not AP’s? I’m sure there’s a simple logic here, it’s just escaping me.

Any advice on this would be much appreciated.

[stephw4763]

Analytical procedures is looking at ratios, nonfinancial information, comparing the current statement with prior, and the actuals with the budgeted numbers. Substantive procedures involve looking at the account transactions, balances, and disclosures. Substantive analytical procedures can be done during the substantive procedures stage if it relevent to the assertion that you are testing. It is not required. So you pretty much have the logic correct.

B- 82
A- 84
R- 67, 72, 78
F- 83

[stephw4763]

Let me know if you need more clarification

B- 82
A- 84
R- 67, 72, 78
F- 83

[zonast]

That does help – Thanks. Just to clarify, analytical procedures are performed at the beginning and end of the audit, but when are substantive procedures performed? At the same time, when the assertion requires it or throughout the entire audit?

[stephw4763]

Well there are three stages in the auditing process:

Stage 1: Planning

Stage 2: Substantive procedures for the specific management assertions

Stage 3: Final review

B- 82
A- 84
R- 67, 72, 78
F- 83

[stephw4763]

Well there are three stages in the auditing process:

Stage 1: Planning

Stage 2: Substantive procedures for the specific management assertions

Stage 3: Final review

B- 82
A- 84
R- 67, 72, 78
F- 83

[stephw4763]

Well there are three stages in the auditing process:

Stage 1: Planning

Stage 2: Substantive procedures for the specific management assertions

Stage 3: Final review

B- 82
A- 84
R- 67, 72, 78
F- 83

[stephw4763]

Oh wow sorry about the triple post!!!!

B- 82
A- 84
R- 67, 72, 78
F- 83

[Author]

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