Between a Rock and a Hard Place: A Path Forward for Using Substantiven Analytical Procedures in Auditing Large P&L Accounts: Commentary andn Analysis

摘要

Substantive analytical procedures can be an important and effective audit tool to gather evidence and highlight areas of potential misstatement, and for decades have been one of the common substantive procedures applied to income statement accounts. Recently, however, there is a growing trend for public company auditors to forego substantive analytical procedures on large income statement accounts, such as revenue, due to criticisms from regulatory inspectors that such procedures are not capable