Evolution of the audit shows a steady trend of increasing the share of services in the analytical work of audit firms, which improves the quality of audits in general. An important task of auditing in the present – to provide assistance to qualified businesses in improving the performances of accounting and reporting, improving the economic feasibility in making management decisions. The auditor should seek not so much to identify the individual errors and deliberate distortions in the account (this feature is still one of the core), as to the finding of systematic irregularities in accounting, from the point of view of the analyst.
Financial analysis in the audit, depending on the task is a tool for obtaining audit evidence and audit-related services view.
Financial analysis as a method of audit evidence. Analytical procedures in greater or lesser extent using each auditor. Collection of evidence carried out by means of analytical procedures. To the best of my skill auditor uses analytical tools for decision-making on the reliability of the values of the amounts recognized in the financial statements through observation, comparison, confirmation, survey, inspection and other necessary in each case procedures. As a result of the analysis the assessment of the reliability of the test object records. This assessment is indirect evidence on which the auditor decides whether the application of other audit procedures that are more oriented to obtain direct evidence, if this is due to the need for a preliminary analysis of the accounting object.
Overseas bound analytical procedures provided auditing standards. For example, the definition of the Regulation on Auditing Standards (SAS 56) analytical procedures are an estimate of the financial information on the basis of a study of possible relationships between financial and non-financial data, including comparisons of recorded amounts from expected amounts that the auditor has identified.
(Standards) of auditing in Russia, as approved by the Audit Commission under the President of the Russian Federation, 25/12/96, at sources of audit evidence provided for the analysis of financial and economic activity of the economic entity. The credibility of analytical conclusions on the quality of the analysis and, if necessary supported by other audit procedures – recalculation, confirmation, documentation, etc.
Analysis is of particular importance in the early stages of the audit, including the planning stage of the audit. In these phases the analytical procedures allow to determine the features of the client, outline a strategy validation, evaluate the degree. audit risk, to identify problems in the formation of financial information. At this stage the planned time frame, check the depth of the actual material, the procedures that are appropriate to apply effective solutions for auditing purposes.