Analytical procedures consist of evaluations of financial information made by a study of plausible relationships among both financial and nonfinancial data. They range from simple comparisons to the use of complex models involving many relationships and elements of data. They involve comparisons of recorded amounts, or ratios developed from recorded amounts, to expectations developed by auditors.
A. Describe the broad purposes of analytical procedures
B. Identify at least three (3) sources of information from which an auditor develops expectations.