Seminar – Analytical Audit Procedures in Practice

Seminar overview

This course covers in details the use of analytical procedures in all 3 phases of an audit engagement i.e., planning, execution and closing.

Analytical procedures consist of the evaluations of financial information made by a study of plausible relationships among both financial and non-financial data. They also encompass the investigation of identified fluctuations and relationships that are consistent with other relevant information or deviate significantly from predicted amounts.

Analytical procedures can be used at all stages of the audit. ISA 315 requires their use during the risk assessment stage. ISA 520 provides guidance to auditors on the use of analytical procedures as substantive procedures as well as near the end of the audit in forming an overall conclusion as to whether the financial statements are consistent with the auditor’s understanding of the entity.

This course includes complete discussion on all the phases mentioned above as well as several questions, solutions and case studies.

Who Should Attend

Auditing and Finance Professionals as well as students from ACCA, CIA, CMA, CIMA, CA, ICAEW, CAT,BBA, MBA and others studying Auditing under ISAs

Learning Outcome

It is a complete guide to understand analytical audit procedures in practice. At the end of this course, participants will be able to:

• Understand the importance of using analytical procedures in audit engagements
• Apply analytical procedures during the risk assessment phase of an audit engagement
• Apply analytical procedures during the execution phase of an audit engagement
• Apply analytical procedures during the closing phase of an audit engagement

Seminar Content

1. Discussion of Analytical procedures in planning stage

a. Understanding the entity and its environment – (Why? What? How?)

b. Case study: Perform analytical procedures as part of risk assessment

2. Discussion of analytical procedures in execution stage

a. Suitability of analytical procedures in a given situation

b. Factors influencing reliability of data

c. Evaluation of whether the expectation is sufficiently precise

d. Acceptable differences

e. Practical techniques

f. Other areas of consideration

g. Case study: Investigating the results of analytical procedures

3. Discussion of analytical procedures in closing stage

a. Case study: Analysis of going concern assumption by using analytical procedures

4. Additional case studies:

a. Calculation of ratios in planning the audit and identifying audit risks

b. Using analytical procedures to highlight unusual changes in statement of profit or loss

c. Identification of analytical procedures to apply on salary system

d. Applying analytical procedures to non-current assets schedule

e. Identification of analytical procedures to apply on revenue

Trainer Information

Mr. Emad Gohar has over 8 years of experience in projects audit, external audit, internal audit, treasury, trade finance, working capital management & financial modeling.

Apart from holding a First-Class Honors degree in Applied Accounting from Oxford Brookes University, UK, he holds multiple professional certifications, including Certified Internal Auditor (CIA), Certified in Risk Management Assurance (CRMA), Certified Fraud Examiner (CFE), Certified Government Auditing Professional (CGAP), Certified Management Accountant (CMA) and Fellow Associate Chartered Certified Accountant (FCCA).