Investigation of unusual items

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Assignment

Distinguish between analytical procedures required by ASA315 and ASA520

ASA 315 stipulates analytical procedures be used as risk assessment procedures, while ASA 520 stipulates their use as substantive procedures. The standards also discuss the nature and purpose, extent of reliance on analytical procedures and subsequent investigation of unusual items identified.

Using the financial report/statements of the company that you have chosen for your Individual Assignment A and B:

a) identify and briefly explain two (2) ways you could use analytical procedures as risk assessment procedures, and

b) identify and briefly explain two (2) ways you could use analytical procedures as substantive procedures during the audit.

This requires you to use the material from your chosen company to illustrate the application of ASA 315 and ASA 520, using Analytical Procedures to the audit process. You are asked to provide examples from the financial statements to support your explanation.

Use the following templates for your answers.

Analytical procedures as risk assessment procedures (ASA315)

 

Analytical Procedure

Explanation

1.

 

 

2

 

 

Analytical procedures as substantive procedures during audit (ASA520)

 

Analytical Procedure

Explanation

1.

 

 

2

 

 

Verified Expert

This an audit assignment which can be easily dealt in a given format by having an in-depth knowledge about the various aspects of the analytical procedure and risk assessment concepts of the company which actually running in the country. No hypothetical all real situations exist in the assignment.

Reference no: EM131976741

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