Using relationships between financial and non-financial data as audit evidence and as an overall review near the end of the audit.
To obtain relevant and reliable audit evidence when using substantive analytical procedures, and to design and perform analytical procedures near the end of the audit that assist in forming an overall conclusion.
SA 520 sits in the Audit Evidence phase of the audit. The Standards on Auditing are issued by the ICAI Auditing and Assurance Standards Board (AASB) and deemed to be prescribed by the Central Government under Section 143(10) of the Companies Act 2013. Compliance with SAs is mandatory for every audit conducted by a Chartered Accountant in India.
For authoritative text, refer to the ICAI AASB Compendium of Standards on Auditing at icai.org.
Editable, letterhead-ready formats that put SA 520 into practice — built from the ICAI working-paper set, free to download.
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SA 520 — Analytical Procedures — is a Standard on Auditing issued by the ICAI Auditing and Assurance Standards Board. Using relationships between financial and non-financial data as audit evidence and as an overall review near the end of the audit. To obtain relevant and reliable audit evidence when using substantive analytical procedures, and to design and perform analytical procedures near the end of the audit that assist in forming an overall conclusion.
Yes. Standards on Auditing are deemed to be prescribed under Section 143(10) of the Companies Act 2013, and ICAI members must comply with them in every audit of historical financial information. Non-compliance must be justified and can attract professional consequences in peer review, NFRA inspection, and disciplinary proceedings.
Documentation sufficient for an experienced auditor with no previous connection to the audit to understand what was done and why (SA 230). For SA 520 in the audit evidence phase, that means evidencing: Determine the suitability of substantive analytical procedures for the given assertions; Evaluate the reliability of the data used, considering its source, comparability, nature and relevance; Develop an expectation of recorded amounts or ratios that is sufficiently precise.
