Analytical Procedures

And I quote from the book: "Analytical procedures are required in the planning phase and it is often done during the testing phase. In addition these are also required during the completion phase." I have a couple of fundamental questions related to the line quoted above, because no further explanation is provided in the book. 1ã??Does "Planning phase" refer to the phase when auditor conducts Risk Assessment Procedures (i.e. when it understands the entity and related Internal Controls and drafts the Audit Programme)? 2ã??Does "Testing phase" refer to the phase when auditor conducts other Substantive Procedures like Test of Details? 3ã??Does "Completion phase" mean the phase near end of audit when he starts to prepare Audit file? You are requested to answer by Y/N for each question. If No, provide a brief explanation.

Kumarjit Dey

Kumarjit Dey

CA Inter


12-Nov-20 15:52


Answers (1)

Best Answer

Planning phase refers to the period before actual execution of audit. RAP would be a part of this. Testing phase is where Substantive procedures are carried out. Completion is where the audit is nearing conclusion and auditor forms his/her opinion.

Suraj Lakhotia

Suraj Lakhotia


12-Nov-20 21:24