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Analytical Procedures - AICPA

Analytical Procedures1889AU Section 329 Analytical Procedures (Supersedes section 318.)Source: SAS No. 56; SAS No. for audits of financial statements for periods beginning on or afterJanuary 1, 1989, unless otherwise section provides guidance on the use of Analytical Procedures andrequires the use of Analytical Procedures in the planning and overall reviewstages of all Procedures are an important part of the audit process andconsist of evaluations of financial information made by a study of plausible re-lationships among both financial and nonfinancial data. Analytical proceduresrange from simple comparisons to the use of complex models involving manyrelationships and elements of data. A basic premise underlying the applicationof Analytical Procedures is that plausible relationships among data may rea-sonably be expected to exist and continue in the absence of known conditions tothe contrary.

edge of the client and the industry or industries in which the client operates. An understanding of the purposes of analytical procedures and the limitations of those procedures is also important. Accordingly, the identification of the rela-tionships and types of data used, as well as conclusions reached when recorded

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