Analytical Review

At the end of the detail audit work after systems testing and substantive testing has been complete, the auditor needs to have the audit evidence that:

1. Proper books and records have been kept and form a reliable basis for preparation of financial statements
2. The accounts have been properly drawn up the those books and records
3. All assets, liabilities and transactions, balances and items in the accounts and records have been confirmed indirectly by systems investigations

After this the auditor is required to subject the financial statements to a thorough and overall analytical review to establish whether:

1. Acceptable, consistent and appropriate accounting policies and Generally accepted accounting principle have been applied
2. All the information contained in the financial statement is compatible and consistent with all other information
3. All the items and information in the financial statements are compatible with the auditor’s knowledge of the client’s enterprise and its circumstances
4. There is adequate disclosure of all items and information that need to be disclosed
5. The accounting requirement of the Companies’ Act Cap 486 and other regulations and legislations have been complied with
6. The auditor has sufficient evidence to enable him give an opinion on the truth and fairness of the financial statements