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  • Methodological elements of auditor’s use of analytical procedures within risk-based approach

Methodological elements of auditor’s use of analytical procedures within risk-based approach

TERRA ECONOMICUS, , Vol. 11 (no. 4.3),
p. 113-117

In the article modern trends in development of the audit market and related problems of audit methodology are analyzed. The necessity of elaboration advanced methodological approach with auditor’s use of analytical procedures validated. The elements of the methodological approach to analytical procedures design perform and result assessment during an audit of financial statements are described in the article. The proposed methodology is designed for using in a risk-based approach on auditing. The article contains the structured approach to application of analytical procedures using with consideration of peculiarities related with the necessity of continuous risk assessment in the audit report argumentation. The proposed methodological approach’s elements are: method of analysis and synthesis; methodology’s analysis-synthesis decomposition for each phase of auditing; the quantitative and qualitative analysis combination techniques within the framework of a threestage algorithm analysis-synthesis; combination of positive and normative analysis, risk assessment algorithm of material misstatement; the target function of the business; corporate lifecycles theory.

Keywords: audit; methodology with auditor’s use of analytical procedures; risk-based approach on auditing; risk assessment algorithm; analysis-synthesis method; corporate lifecycles theory

  • Arzhenovskiy S.V., Bahteev A.V. (2013). The methodological approach to the combined estimation of falsification risk due to fraud in an audit of financial statements. Terra Economicus. Rostov-on-Don: SFU, vol. 11, no. 2, part 3, pp. 57–62. (In Russian.)
  • International standard on auditing 520 Analytical Procedures. Available at: http://www.ifac.org/sites/default/files/downloads/a026-2010-iaasb-handbook-isa-520.pdf.
  • Managing corporate lifecycles (2008). Ichak Adizes. SPb.: Piter, 384 р. (In Russian.)
  • The analysis-synthesis method application when using analytical procedures for auditing . Accounting and statistics. Rostov-on-Don: RSEU. 2013, part 2, pp. 65–71. (In Russian.)
  • The Federal Law «On Auditing» from 30.12.2008. № 307 (ed. 23.07.2013).
  • Federal standard on auditing «Analytical procedures» № 20. Approved by the resolution of the government of the Russian Federation from 23.09.2002. № 696 (ed. 22.12.2011). Collection of legislation. 30.09.2002, no. 39, art. 3797. (In Russian.)
Publisher: Southern Federal University
Founder: Southern Federal University
ISSN: 2073-6606