Assessment and Interpretation of the Patterns of Analytical Procedures by Yemeni's Auditors: A Field Study

Abstract

The purpose of this study is to identify the extent to which Yemeni auditors use both basic and advanced analytical review procedures, how conscious they are to its importance in general, and to essential requirements of the International Auditing Standard No (520) in particular. This study also aims to test the potential relationship between experience level of Yemeni Auditors and their use of such procedures, and to explore differences among auditors according to both sector in which auditing clients concentrate and training courses related to using analytical procedures and between their use of such procedures. To achieve the study goals a questionnaire was designed and administered to certified auditors (n=124) working in Sana'a, Aden and Hadramout with only (82) completed and returned. Following analysis and hypotheses testing the authors concluded a number of findings the major of which where; Yemeni Auditors use basic analytical procedures more than advanced analytical procedures, there is strong awareness of the importance of using analytical procedures, where auditors believe that analytical procedures could be helpful in detecting from 20% to less than 40% of errors in financial statements. The study failed to support a relationship between auditors experience level and their use of both basic and advanced analytical review procedures. Another finding was that Yemeni Auditors are unaware of the basic requirements of the Intentional Auditing Standard No. (520) concerning analytical procedures, and that there are many barriers hindering use of the analytical procedures including lack of sufficient knowledge about various types of analytical procedures, lack of budgetary information for businesses under consideration, lack of sector standards for the businesses under revision, irrelevance of data available to make comparisons and others.