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Sa 520 analytical procedure

Auditing

How does degree of disaggregation affect the analytical procedure ?

Swathi Krishna

CA Final

★ 8K+

11-Jun-20 21:06

396

Answers (2)

Best Answer

Analytical procedures will be more effective when applied on individual parts of the financial and not whole item. Higher the degree of disaggregation more precision of the procedure and more reliance can be placed on the procedure. Objective of procedure will determine the degree of disaggregation.