• Analytical Review includes the studying of significant ratios and trends and the investigation of any unusual fluctuation and items whether in the Income Statement or Balance Sheet .
• The extent of reliance that an auditor places on the results of analytical review procedures depend on includes materiality of the items involved, assessment of inherent and control risks, etc

Purposes Of Analytical Review In An Audit

• To assist the auditor in planning the nature, timing and extend of other audit procedures
• As substantive procedures when their use can be more effective or efficient than tests of details in reducing detection risk for specific financial statement assertion
• As an overall review of the financial statements in the final review stage of the audit