Analytical Procedures for Management Accountants and Auditors

Abstract

Analytical procedures entail estimating an expected value for an account and comparing the estimation to the book value. External auditors make extensive use of analytical procedures. By applying analytical procedures before the external audit is performed, the management accountant can locate and correct misstatements before they become problematic. Examines the three categories of analytical procedures and their utility to the management accountant. The three categories are: reasonableness tests, trend analysis, and ratio analysis. Explains each category and discusses the methods within each category. Also, provides examples to aid the accountant in applying the procedures.

Citation

Colbert, J.L. (1994), "Analytical Procedures for Management Accountants and Auditors", Managerial Auditing Journal, Vol. 9 No. 5, pp. 3-7. https://doi.org/10.1108/02686909410060513