Application Of Analytical Procedures In Financial Statements Auditing

Analytical procedure is one of the important audit procedures in the audit of financial statements in our country.At present,the actual use of analytical procedures by auditors is a mere formality.In order to improve the audit practice capability,it is necessary to understand the reasons for them.In addition,financial fraud cases of listed companies occur frequently,and effective analytical procedures can detect signs of financial fraud.Therefore,the effective application of analytical procedures helps auditors find financial fraud and maintain market order.At the same time,the rapid development of big data technology enriches the amount of data available and the way it is analyzed,which has a profound impact on industries based on data analysis.Therefore,it studies what kind of application of analytical procedures can be used in the audit of financial statements The impact is equally significant.This article divides the application of analytical procedures into two parts: data collection and data analysis.First of all,it introduces the definition of the analytical procedures,the development history and other related background,and combines the guidelines and examples to illustrate the use of analytical procedures by the auditors.Adequate and appropriate financial and non-financial data should be collected and comprehensively used based on the characteristics of various analytical methods to identify and respond to the risk of material misstatement,and actively investigate the identified differences.Then,the paper gives a questionnaire to all levels of auditors to survey the application of analytical procedures.It is learned that practitioners in data collection generally reflect the poor availability and verifiability of data,and the non-financial data are more concerned about Low,the use of statistical modeling techniques in data analysis is extremely low,while the overall professional quality is so low that it is difficult to choose the right analytical method and establish the expected value.After that,this article analyzes the current external environment and other factors that affect the use of analytical procedures by auditors.It is understood that many databases have high barriers to entry,and the reference value of third-party work has limited reference value.The defects in the human resources policies of accounting firms are not conducive to improvement The overall quality of employees and other status quo,and discussed the big data technology for the analysis of program data collection and data analysis of the two major areas of opportunity,such as to help collect real-time data,unstructured data and mathematical statistics.Finally,some constructive suggestions such as reducing database access threshold in data collection,strengthening attention to non-financial data,strengthening the use of statistical model analysis in data analysis,improving human resource policies in the firm are put forward.