Analytical technique
A broad review technique that evaluates financial or operational data by analyzing comparative metrics, directional movements, and fluctuations in values across different time periods. The goal is to develop a high-level perspective on the organization’s overall position and performance trajectory. This analytical process aids in scoping areas that may warrant more focused examination based on identified anomalies, outliers or concerning patterns in the ratio analysis, trend analysis and period-over-period variance analysis. It provides an efficient means to pinpoint potential risk areas and tailor the assurance engagement approach.
