Audit standards require analytical procedures at two stages during the audit: at the risk assessment (planning) phase and again at the end of the audit. They are optionally used as a substantive procedure during the course of an audit.

CONCEPT REVIEW:

Often times it does not seem to be productive or effective for auditors to send accounts receivable confirmations, yet the standards require it. It is important that auditors understand how to maximize effectiveness and efficiency in this required audit procedure.