Analytical procedure in an audit of fixed assets

Abstract

The article describes the content of analytical procedures, stages and methods of their implementation when planning an audit of fixed assets. Areas of potential risk were identified in terms of equipment, condition, movement, use of fixed assets and investment activity of the organization. Additional analytical procedures in the audit of fixed assets are indicated. Introduction Analytical procedures play a significant role in the theory and practice of audit, as a result of their application, the features of the audited entity's activity are revealed, and the risks of potentially dangerous areas of the accounting process are assessed. Analytical procedures help to identify unusual transactions, as well as coefficients and trends that indicate possible problems that are relevant to the financial (accounting) statements of the audited entity. A properly organized preliminary review of the organization's financial condition reduces the auditor's risk during the audit. In accordance with the National Audit Standard Activity No. 20 "Analytical procedures", these procedures include: a. Study of financial and other information about the audited entity in comparison with:  With comparable information for previous periods;  With the expected performance of the audited entity, such as estimates or forecasts, as well as the auditor's assumptions;  With information about the performance of organizations in the same industry; b. Comparison of the methods established in the accounting policy with those actually applied in the organization; c. Comparison of balances and turnovers on the accounts of the analytical account with the data of synthetic accounting; d. Analysis of factors that affect the reduction of financial and economic indicators of the organization; e. Consideration of relationships:  Between elements of information that are supposed to correspond to the Pro.  Based on the experience of the audited entity;  Between financial information and other information.