Factors to Consider when Using Analytical Procedures

Question 1

What does auditor need to consider (suitability)

Answer 1

The suitability of analytical procedures to a particular assertion

Question 2

What does auditor need to consider (reliability)

Answer 2

The reliability of the data from which the expected amounts or ratios are developed

Question 3

What does auditor need to consider (material)

Answer 3

Whether the expectation is sufficiently precise to identify a material misstatement

Question 4

What does auditor need to consider (difference)

Answer 4

The amount of any difference that is acceptable without further investigation being required