This paper analyzes analytical procedures in auditing, including theoretical and practical aspects, as well as analytical procedures of income and expenses. The aim of this paper has been to determine the essence and the purpose of analytical procedures in auditing. The paper states that analytical procedures in auditing enable the auditor to understand specific features of activity of a business entity – the audit client, areas of potential risk, audit risk and materiality level; to detect the presence of distortions in financial reporting; to analyze the client’s financial condition; to estimate the probability of its continuous activities; to identify the need for additional audit procedures; and to develop recommendations on how to improve the client’s financial condition, which is important in contemporary circumstances of the development of the Iraqi economy. The paper also provides the conclusion that solving the problem of efficiency of analytical procedures can be enhanced by using modern information technologies and systems.
Keywords: Analytical Procedures, Audit, Audit Evidences, Audit of Revenue, Expenditure
