Probe | When do I use the extended analytical procedures, extended tests of detail, and substantive sampling?

Published: 29/08/2016

When do I use the extended analytical procedures, extended tests of detail, and substantive sampling? When I found during the audit that my significant and required procedures were not sufficient.

Answer:

During planning you have to compare your desired audit risk with the risk of material misstatement and then decide how much audit work you have to do to get from ROMM down to your DAR but there is no particular order in which these needs to be completed, i.e. you don't have to first complete Analytical review (AR) and then test of detail (TOD) and then sampling. If you know that you won't be able to do a proper AR on this accounting balance you can first do TOD or even sampling. When you decide during the audit that you have not obtained sufficient evidence after completing the steps you ticked in 12.20 you can change your audit plan, for that item, without going back into 12.20. You can indicate on the audit program conclusion that you want to change your audit plan and then tick the additional procedures you want to complete.

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