Analytical procedures in the audit of non-state medical institutions

2021 ◽  
pp. 49-54
Author(s):  
E. I. Efremova
Keyword(s):  
Financial Statements ◽  
Maximum Efficiency ◽  
Medical Institutions ◽  
Analytical Procedures

The relevance of the study of the problems of applying analytical procedures in the audit of financial statements of non-state medical institutions is due to the increasing requirements for auditors: since we work in one of the most difficult and uneven economic climates in our time, audit is becoming an even more important guarantor of stability than ever before. The advantage of using analytical procedures is that they help to minimize audit costs and allow you to use the resources limited under the contract with maximum efficiency. The importance of applying analytical procedures is also due to the increase in the number of services provided by audit companies, such as consultations, etc.

scholarly journals The use of analytical procedures by Yemeni auditors

2015 ◽  
Vol 12 (2) ◽  
pp. 17-25
Author(s):  
Shamharir Abidin ◽  
Mohammed Abobaker Baabbad
Keyword(s):  
Financial Statements ◽  
Audit Firms ◽  
Analytical Review ◽  
Analytical Procedures

This study sets out to investigate the extent to which Yemeni auditors use analytical review procedures during the audit of client’s financial statements. It also examines the stage of auditing procedure in which Yemeni auditors implement analytical review procedures. Moreover, the study determines the relationships between the importance’s factors and the use of analytical review procedures. The findings of the study have indicated that the Analytical Procedures were utilized on high percentage by audits in larger and high experienced audit firms compared to small and low experienced audit firms where the results have shown low percentage. Nevertheless, the role of auditors’ perception towards Analytical Procedures has proved to have a significant effect of usage of Analytical Procedures

scholarly journals Disclosure and Audit Implications of Nonfinancial Measures: A Teaching Case

2018 ◽  
Vol 12 (1) ◽  
pp. I1-I13 ◽  
Author(s):  
Matthew L. Hoag ◽  
Gabriel D. Saucedo
Keyword(s):  
Financial Statements ◽  
Risk Assessments ◽  
Microsoft Excel ◽  
Teaching Case ◽  
Fraud Risk ◽  
Nonfinancial Measures ◽  
Analytical Procedures ◽  
Fraud Risk Assessments ◽  
Substantive Analytical Procedures

SUMMARY This case introduces students to nonfinancial measures (NFMs) and encourages thoughtful consideration and discourse surrounding their reporting and use by managers and auditors. NFMs are commonly reported by companies to provide increased transparency of operations and to more effectively describe performance. External parties such as analysts and auditors make use of NFMs in performing valuation assessments, fraud risk assessments, and substantive analytical procedures. In completing this case, students will be exposed to actual NFMs disclosed in SEC filings and employ Microsoft Excel knowledge to perform foundational analytical procedures. Students will also analyze how these NFMs link to the financial statements, as well as reflect upon the implications of NFMs for both internal and external users.

ANALYTICAL PROCEDURES DESIGN FOR ASSESSING PROFITABILITY DURING THE AUDITING OF HOUSING MANAGEMENT COMPANIES’ FINANCIAL STATEMENTS

2017 ◽  
Author(s):  
Liudmyla Sokolenko ◽  
Keyword(s):  
Business Processes ◽  
Financial Statements ◽  
Continuous Operation ◽  
Debt Management ◽  
Management Company ◽  
Use Of Resources ◽  
Time Period ◽  
Analytical Procedures ◽  
The Impact

The paper studies approaches to the analytical procedures design for assessing profitability in auditing of housing and communal services management companies’ financial statements in order to increase the validity of the auditor's conclusion. The purpose of the article is to prove the usefulness of using analytical procedures for assessing profitability of management company’s financial statements during its auditing, formulating their tasks and directions of information and documentary support. It has been established that the use of economic and mathematical modeling and the calculation of the panel of profitability indicators as analytical procedures essentially make it possible to assess the management company activity efficiency, as well as use of resources, and the effectiveness of debt management. In article the auditor’s tasks of analytical procedures for assessing the profitability of housing and communal services management company were specified: 1) assessment of the management company’s profitability trend during the last reporting periods for establishing general trends in its performance and future activities development; 2) identification of factors that determine management company’s profitability changes over the analyzed time period, that will make it possible to record significant ones and describe potential threats to profitability; 3) determination of reserves for increasing profitability for specific business processes or types of activities; 4) establishing the impact of changes in profitability on the management company’s ability to ensure the continuous operation. A list of profitability indicators performance has been formed. They should be calculated in the path of analytical procedures. Also it is recommended to draw up a working document "Analytical procedures for assessing the profitability of a management company". Basing on the content of profitability indicators and the possibilities of their calculation in the auditor's analytical procedures, auditor’s considerations have been formulated. They should guide the auditor in interpreting the calculated indicators.

scholarly journals Some issues of improving the effectiveness of the implementation of audit engagements

2021 ◽  
pp. 56-61
Author(s):  
Катерина Леонідівна Ткаченко
Keyword(s):  
Legal Status ◽  
Financial Statements ◽  
Point Of View ◽  
International Standards ◽  
Maximum Efficiency ◽  
Related Services ◽  
Statistical Sample ◽  
State Of Affairs ◽  
Audit Effectiveness

The issue of audit effectiveness is one of the most essential and debating issues that have not been fully resolved at the present time yet. This issue is considered in the context of compliance with «The International Standards for Quality Control, Auditing, Review, Other Assurance and Related Services, 2016–2017». A gradation of quality indicators for the performance of audit assignments is proposed from the point of view of the need to achieve the completeness of the performance of the audit assignment, minimize the costs of its implementation and achieve maximum efficiency. Generalized groups have been identified into which it is advisable to divide the requirements for assessing the effectiveness of the task of auditing financial statements and clearly delineated the need to perform two types of audit confirmations: for compliance with legal requirements and compliance with the real state of affairs at the enterprise. A five-level classification of subjects of control over the effectiveness of the audit assignment has been developed, depending on the legal status. The concept of objects of control is generalized. It is proposed to evaluate the effectiveness of the audit assignment by three methods: an indirect method of comparing various options, an assessment based on the final results, an assessment on the immediate results, and the essence of each method is disclosed. It was determined that one of the significant indicators that affect efficiency is the audit sample and methods for creating a non-statistical sample are proposed. We believe that the implementation of the proposed methods of assessing efficiency in the practice of performing audit tasks will contribute to the formation of high-quality audit practice in Ukraine.

Perbandingan Efektivitas Penghimpunan Dana Wakaf melalui Uang Berbasis Online di Global Wakaf dan Dompet Dhuafa

2020 ◽  
pp. 108
Author(s):  
Budi Setiadi ◽  
Neneng Nurhasanah ◽  
Siska Lis Sulistiani
Keyword(s):  
Data Envelopment Analysis ◽  
Research Method ◽  
Financial Statements ◽  
Maximum Efficiency ◽  
Data Envelopment ◽  
Operational Costs ◽  
Dea Method ◽  
Low Efficiency ◽  
Object Of Study ◽  
Financial Technology

Abstract. The development of information technology, especially in the field of financial technology helps waqf institutions in the development of waqf findrising strategies, one of which is the existence of online waqf. Therefore it is necessary to optimize the collection of waqf funds based online, one of them with efficiency. The purpose of this study was to determine the level of effectiveness of the collection of waqf-based online waqf funds in Global Waqf and Dompet Dhuafa. The research method used is qualitative with the DEA method. The object of study is the waqf institutions in Global Waqf and Dompet Dhuafa in the form of financial statements of 2 institutions in the period 2016 - 2017, interviews and documentation. Research results based on the above discussion are as follows: (1), Global Waqf and Dompet Dhuafa have fulfilled the elements in raising funds. Both institutions have their respective strategies in collecting funds based on online (2). The level of effectiveness of collecting waqf funds online at Global Waqf and Dompet Dhuafa using the DEA method for the 2016-2017 period, in the 2016 Dompet Dhuafa and Global Waqf levels, the efficiency level has been reaching 100% or equal to 1. This shows that Dompet Dhuafa and Global waqf had maximum efficiency in that year. Figures at 0.0% to gain indicate the efficiency target is in accordance with the actual conditions and obtained achieved 100%. In 2017 Dompet Dhuafa has an efficiency level of 100% or equal to 1. While Global Waqf has decreased efficiency to 50% due to its value of less than 100%. The optimization of online waqf collection in 2017 at Global Waqf institutions experienced low efficiency in order to achieve perfect efficiency operational costs should be reduced by around 80%, while online waqf receipts must be increased to 49% of the actual total.Keywords: Financial Technology, Effectiveness, Efficiency, Findrising Strategies, Data Envelopment Analysis. Abstrak. Adanya perkembangan teknologi informasi khususnya di bidang financial technology membantu lembaga wakaf dalam perkembangan strategi findrising wakaf, salah satunya yaitu dengan adanya wakaf online. Oleh karena itu dibutuhkan optimalisasi penghimpunan dana wakaf berbasis online, salah satunya dengan efisiensi. Tujuan penelitian ini adalah untuk mengetahui tingkat efektivitas penghimpunan dana wakaf berbasis wakaf online di Global Wakaf dan Dompet Dhuafa. Metode Penelitian yang digunakan adalah kualitatif  dengan metode DEA. Objek yang diteliti adalah lembaga wakaf di Global Wakaf dan Dompet Dhuafa berupa laporan keuangan 2 lembaga pada periode 2016 – 2017, wawancara dan dokumentasi. Hasil Penelitian berdasarkan pembahasan di atas sebagai berikut : (1), Global Wakaf dan Dompet Dhuafa sudah memenuhi unsur-unsur dalam penghimpunan dana. Kedua lembaga tersebut mempunyai strategi masing-masing dalam menghimpun dana yang berbasis online (2), Tingkat efektivitas penghimpunan dana wakaf online di Global Wakaf dan Dompet Dhuafa dengan metode DEA  periode 2016-2017, di periode 2016 Dompet Dhuafa dan Global Wakaf tingkat efisiensi nya sudah mencapai 100% atau senilai dengan 1. Hal ini menunjukan Dompet Dhuafa dan Global wakaf sudah efisiensi secara maksimal di tahun tersebut. Angka pada pada to gain 0.0 % menunjukan target efisiensi sudah sesuai dengan kondisi aktual dan memperoleh achieved 100 %. Di tahun 2017 Dompet Dhuafa tingkat efisiensinya sudah mencapai 100% atau senilai dengan 1. Sedangkan Global Wakaf mengalami penurunan efisiensi menjadi 50 % dikarenakan nilainya yang kurang dari 100%. Optimalisasi penghimpunan wakaf online pada tahun 2017 pada lembaga Global wakaf mengalami efisiensi rendah agar mencapai efisiensi sempurna biaya operasional harus dikurangi sekitar 80 %, sedangkan penerimaan wakaf online harus dinaikan menjadi 49 % dari total actualnya.Kata Kunci : Financial Technology, Efektivitas, Efisiensi, Strategi Findrising,  Data Envelopment Analysis. 

Analytical Procedures and Audit-Planning Decisions

2000 ◽  
Vol 19 (2) ◽  
pp. 27-45 ◽  
Author(s):  
Steven M. Glover ◽  
James Jiambalvo ◽  
Jane Kennedy
Keyword(s):  
Financial Statements ◽  
Future Research ◽  
Audit Risk ◽  
Audit Planning ◽  
Planning Decisions ◽  
Analytical Procedures ◽  
Interim Testing ◽  
Audit Effectiveness

This study examines auditors' decisions to revise preliminary audit plans after analytical procedures performed during interim testing reveal significant, unexpected fluctuations. We examine the effects of two variables on these decisions: (1) the presence or absence of an explicit incentive for management to misstate the financial statements, and (2) the degree to which management's explanation for the fluctuation is independently corroborated. We hypothesize that these two variables interact. Auditors will be more likely to increase their planned tests when there is minimal corroboration of management's explanation for the fluctuation and there is an explicit incentive for management to misrepresent the financial statements. The results of an experiment are consistent with this hypothesis. While our results suggest that auditors are more likely to revise audit plans in these conditions, we also find that a relatively high proportion of auditors do not revise their plans when faced with increased audit risk signaled by significant, unexpected fluctuations. Future research is needed to better understand auditors' reluctance to expand testing and whether this reluctance jeopardizes audit effectiveness.

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

2014 ◽  
Vol 34 (3) ◽  
pp. 161-179 ◽  
Author(s):  
Steven M. Glover ◽  
Douglas F. Prawitt ◽  
Michael S. Drake
Keyword(s):  
Audit Quality ◽  
Financial Statements ◽  
Difference Threshold ◽  
Income Statement ◽  
Public Company ◽  
Significant Difference ◽  
Low Levels ◽  
Analytical Procedures ◽  
Hard Place ◽  
Substantive Analytical Procedures

SUMMARY 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 of providing useful substantive evidence. In this commentary, we address the concern that discouraging the application of appropriately rigorous substantive analytical procedures may diminish overall audit quality. We consider whether rigorous substantive analytical procedures can be designed to provide useful evidence at moderate and low levels of assurance for large income statement accounts, such as revenue, even when the significant-difference threshold exceeds overall materiality. Such procedures can provide strong evidence that financial statements are free of massive fraud or unintentional misstatement. Further, the moderate or low assurance obtained by such substantive analytical procedures can be combined with assurance provided by other audit procedures to yield high overall assurance. We illustrate one potential approach that may be useful in designing substantive analytical procedures to achieve moderate or low assurance and we explain how our approach is consistent with auditing theory and auditing standards.

ABC Electronics: An Instructional Case Illustrating Auditors' Use of Preliminary Analytical Procedures

2014 ◽  
Vol 8 (1) ◽  
pp. I1-I10 ◽  
Author(s):  
Paul M. Clikeman ◽  
Jamie Diaz
Keyword(s):  
Risk Assessment ◽  
Financial Statements ◽  
Consumer Electronics ◽  
Financial Statement ◽  
Planning Stage ◽  
Excel Spreadsheet ◽  
Financial Statement Audit ◽  
Analytical Procedures

SUMMARY This instructional case demonstrates auditors' use of analytical procedures during the planning/risk assessment phase of a financial statement audit. An Excel spreadsheet enables instructors to embed up to seven operating problems or potential accounting issues into a fictitious consumer electronics manufacturer's current year financial statements. Questionnaires from students at two universities indicate that the case is effective at helping undergraduate auditing students understand (1) auditors' use of analytical procedures during the planning stage of the audit, and (2) the types of accounting issues and operating problems that might be identified using analytical procedures.

scholarly journals Audit of the Continuity of Enterprise Activity

2020 ◽  
pp. 103-111
Author(s):  
Oksana Knyshek ◽  
◽  
Olena Konovalova ◽  
Valentyna Synelnyk ◽  
◽  
...  
Keyword(s):  
Financial Statements ◽  
Professional Judgment ◽  
Going Concern ◽  
Financial Condition ◽  
Economic Decisions ◽  
Analytical Procedures ◽  
Definition Of ◽  
Relationship Of ◽  
Enterprise Activity

In the conditions of the economic crisis, there is more and more growth in the need for reliable information about the prospects for the enterprise development for making economic decisions. The audit of the continuity of enterprise activity allows to improve the quality of information contained in the financial statements, as well as to provide all stakeholders with information resource, which contains an independent professional judgment of the auditor on the activities of the entity on a continuous basis. The purpose of the article is to reveal the essence of the going concern principle in accounting and audit and to substantiate practical tools for conducting an audit of the continuity of enterprise activity. The theoretical provisions on the definition of going concern principle and going concern assumption were disclosed. Analytical procedures used in the audit of the continuity of enterprise activity were characterized. The analytical procedures given in the study can be used at all stages of the audit of financial statements. The methods of carrying out express-diagnostics under the hour of finding out the factors of influence on the continuity of the enterprise activity was presented. The content of the test questionnaire for assessing the continuity of the enterprise activity was proposed. Criteria for assessing indicators depending on their actual level were substantiated to determine the possibility of continuous operation of an enterprise. Using the rating of indicators of the financial condition, the auditor will be able to determine the class of the enterprise and, accordingly, the risk of bankruptcy and the relationship of interested users with this enterprise. The influence of the assessing result of adhere to the going concern principle on the auditor's opinion was revealed.

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