Define: Analytical Review

UK Accounting Glossary

Definition: Analytical Review


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Analytical review is an auditing procedure that uses ratios to determine whether any significant changes have taken place.



What is the dictionary definition of Analytical Review?

Dictionary Definition


An analytical review is a auditing test used to gather evidence of the validity, completeness and accuracy of financial statements and accounting records. Analytical review is a kind of substantive test which can b used in the planning of, or undertaking of an audit. Analytical review works by comparing data, figures, financial and non-financial  data, either externally or internally to determine whether said data and figures are reasonable. The procedure used may vary, it could simply be a comparison of data, for example comparing the amount held in a current account with that held in the same current account last year. Or it could be a more sophisticated procedure which uses computer auditing software as well as advanced statistical procedures, for example, using multiple regression analysis.


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