Analytical Procedures:

Analytic, Analytical Review, Analytical Review Procedures, or simply Analytical Procedure: each auditing firms call it with a different term, but they all referring to the same standard (common) audit procedure.

One of the most important and widely used auditing technique is Analytical Procedures: they are consist of evaluations of financial information made by a study of plausible relationships among both financial and non-financial data. They range from simple comparisons to the use of complex models involving many relationships and elements of data. They involve comparisons of recorded amounts, or ratios developed from recorded amounts, to expectations developed by auditors. ("Reasonableness tests") Please describe and discuss the broad purposes of analytical procedures and Identify the sources of information from which an auditor develops expectations.