engleski

The Role of Analytical Procedures in Financial Statements Auditing,

Audit process is performed in accordance with auditing standards and auditor's codex of professional ethics. According to International Standards on Auditing (ISA) 520 – Analytical Procedures auditor can present analytical procedures as the audit evidence. The consideration of the analytical procedures in the process of financial statements auditing should include the following questions: 1) in which phase of the process of financial statements auditing should be used, 2) with what purpose and 3) how to use the analytical procedures so that aims of the financial statement auditing will be accomplished. So, very important aim of this paper is to give answers on these questions. According to the ISA - 520 the analytical procedures may be performed in the planning phase, in the testing phase and in the completion phase of the process of financial statements auditing. Analytical procedures are very time consuming, easy to use so the auditors use the in all phases of financial statement auditing. This is especially important in the Croatian conditions of auditing financial statements where there is a great competition among the audit firms in performing auditing. In these conditions financial statement auditing must be efficient and effective. So, the purpose of analytical procedures in the process of financial statement auditing can be: understanding the client's industry and business, indicate possible misstatements (attention directing), reduce detailed tests, access going concern, etc. The aim of this paper is to present the empirical evidence about use and the importance of analytical procedures in the process of financial statements auditing among the Croatian auditing companies. So, the main hypothesis of this paper is that in the Croatian auditors use analytical procedures in the process of financial statements auditing In order to confirm the defined hypothesis the following scientific methods will be used comparability methods and description methods. Besides that the main hypothesis will be tested with statistical methods.

nalytical procedures; financial statements auditing; Croatia

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