Anneke Maré Moolman


The International Standards on Auditing require of the external auditor to perform analytical procedures during audits. Analytical procedures range from simple to advanced, but available literature focuses on ratio and trend analysis for use in audits. This study therefore aims to analyse and compare the objective, advantages and disadvantages of selected analytical procedures other than ratio and trend analysis (Du Pont, Economic Value AddedTM (EVA), Altman’s Z-score and Benford’s Law) in an external auditing context by means of a qualitative literature analysis. Findings indicate that further analytical procedures significantly compliment ratio and trend analysis during audits, specifically during going concern evaluations and identifying error and fraud. Du Pont, Altman’s Z-score and Benford’s Law is found to be of particular value to the auditor, due to its cost benefit. EVA is found to be impractical to utilise by the auditor if not implemented by the entity. The study is an important contribution to the literature on analytical procedures as it is the first of its kind to analyse the objective, advantages and disadvantages of analytical procedures other than ratio and trend analysis in an external auditing context.
Analytical Procedures; Auditor Decisions; ISA 520; Ratio and Trend Analysis; Du Pont; Economic Value Added; Altman; Benford’s Law


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How to Cite
MOOLMAN, Anneke Maré. The Usefulness Of Analytical Procedures, Other Than Ratio And Trend Analysis, For Auditor Decisions. International Business & Economics Research Journal (IBER), [S.l.], v. 16, n. 3, p. 171-184, june 2017. ISSN 2157-9393. Available at: <>. Date accessed: 19 sep. 2017. doi: