Recruiter's Glossary

Examples: Audit Risk • Ledger • Tracing

Analytical Procedures

Term from Auditing industry explained for recruiters

Analytical Procedures are methods auditors use to evaluate financial information by comparing different sets of data to spot unusual patterns or unexpected differences. Think of it like a detective's work - auditors look at trends, compare current numbers with past years, or check if relationships between different financial items make sense. For example, they might check if payroll costs match the number of employees, or if sales figures align with inventory changes. This helps auditors identify areas that need closer inspection during an audit. It's a key part of modern auditing that helps make the audit process more efficient and effective.

Examples in Resumes

Performed Analytical Procedures to identify unusual financial trends across multiple client accounts

Led team in developing Analytical Procedures for reviewing quarterly financial statements

Enhanced audit efficiency by implementing advanced Analytical Procedures and Financial Analysis techniques

Applied Analytical Review methods to detect potential misstatements in financial records

Typical job title: "Auditors"

Also try searching for:

Auditor External Auditor Internal Auditor Financial Analyst Audit Associate Senior Auditor Audit Manager

Where to Find Auditors

Professional Organizations

Job Boards

Professional Networks

Example Interview Questions

Senior Level Questions

Q: How would you design an analytical procedures strategy for a new client in an unfamiliar industry?

Expected Answer: A senior auditor should explain how they would research industry benchmarks, review previous years' data, identify key business drivers, and develop appropriate comparison metrics. They should also mention involving industry specialists when needed.

Q: Tell me about a time when analytical procedures revealed a significant issue. How did you handle it?

Expected Answer: Should describe their problem-solving process, including how they identified the issue through analytics, investigated root causes, communicated with the client, and resolved the situation.

Mid Level Questions

Q: What factors do you consider when setting expectations for analytical procedures?

Expected Answer: Should discuss considering industry trends, historical data, business changes, economic conditions, and how these factors might impact financial relationships.

Q: How do you determine if a variance identified through analytical procedures is significant?

Expected Answer: Should explain how they assess both quantitative and qualitative factors, including materiality thresholds, percentage changes, and understanding of the client's business.

Junior Level Questions

Q: What are the basic types of analytical procedures used in auditing?

Expected Answer: Should be able to explain simple comparisons like current year vs prior year, actual vs budget, and basic ratio analysis in straightforward terms.

Q: Why do we perform analytical procedures during an audit?

Expected Answer: Should explain that analytics help identify unusual patterns, reduce detailed testing needed, and provide evidence about the completeness and accuracy of financial information.