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Analytical Procedure

Radhey Shyam Jha (Student) (1616 Points)

30 March 2019

Whether Checking of Depreciation Calculation is an example of Analytical Procedure ?

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mayank verma (65 Points)
Replied 02 April 2019

No,as per SA-330(responses to the assessed Risk of material misstatement) checking the depreciation calculation is included in the test of details as an audit procedure where we are checking the valuation assertion of an asset as a response to the assessed risk of material misstatement in the valuation assertion of the account balance.
Hence it is not a analytical procedure as here we are not checking the ratios and trends of two financial or financial and one non financial data ,as the case maybe,
It is a kind of Test of detail.