NIA 520 Procedimientos analíticos

International Auditing Standard 520: Analytical Procedures

Overview of International Auditing Standard 520

• The International Auditing Standard 520 outlines the auditor's responsibility to perform analytical procedures during and at the conclusion of an audit to assist in forming a general conclusion about financial statements.

• The standard emphasizes that auditors must use analytical procedures to obtain sufficient and appropriate audit evidence, ensuring consistency in financial information.

Definition and Application of Analytical Procedures

• Analytical procedures involve evaluating financial information through analysis of plausible relationships between both financial and non-financial data, particularly applicable to large volumes of predictable transactions.

• These evaluations include comparisons between recorded amounts and auditor expectations, as well as complex analyses using statistical techniques, leveraging historical data such as budgets or sales coefficients.

Requirements for Substantive Analytical Procedures

• Auditors are required to design and implement substantive analytical procedures based on assessed significant risks and necessary detailed tests while seeking effectiveness and efficiency.

• Evaluating the reliability of data is crucial; auditors must analyze its nature, source, relevance, controls over preparation, and overall effectiveness before establishing expectations for recorded amounts.

Levels of Assurance from Analytical Procedures

• Analytical procedures can be categorized into three groups based on the level of assurance obtained:

• High Effectiveness: Provides sufficient evidence for assertions but may require additional procedures if significant risk is present.

• Moderate Effectiveness: Used to corroborate evidence gathered during the audit with moderate assurance levels.

• Limited Effectiveness: Basic comparisons yield limited assurance regarding findings.

Techniques Used in Analytical Procedures

• Various techniques employed by auditors include ratio analysis, trend analysis, pattern analysis, and regression analysis. These methods help form conclusions at the end of an audit regarding the consistency of financial statements.

• At the conclusion stage, auditors apply analytical procedures to validate their findings throughout the audit process. This aids in forming reasonable conclusions that underpin their opinions on financial statements.

Investigating Results from Analytical Procedures

• Based on results from applying analytical procedures, auditors must identify any fluctuations or relationships inconsistent with relevant information or differing from expected amounts.