Analytical Review (Noun)
Meaning
An auditing procedure based on ratios among accounts and tries to identify significant changes.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The auditor's analytical review procedure identified unusually high accounts payable compared to the previous year, prompting a closer examination of the company's cash flow.
- The analytical review revealed significant discrepancies between the company's sales revenue and cost of goods sold, indicating potential errors in financial reporting.
- By performing an analytical review of key ratios, the auditor detected a substantial increase in the company's debt-to-equity ratio, signaling potential financial instability.
- The analytical review procedure revealed that the company's gross margin ratio had decreased significantly over the past quarter, warranting further investigation.
- The auditor's analytical review of financial statements revealed a notable difference in the company's asset turnover ratio, suggesting possible inefficiencies in asset management.