Consider changes to an auditor’s use of substantive analytical procedures to better align with the auditor’s risk assessment and to address the increasing use of technology tools in performing these procedures, including whether to revise AS 2305, Substantive Analytical Procedures.  



AS 2305 establishes the requirements regarding the use of substantive analytical procedures in an audit of financial statements. While the standard has remained largely unchanged since its issuance in 1989, the following developments have taken place:

  • Adoption of the Board’s risk assessment standards: AS 2305 predates the adoption of the Board’s risk assessment standards and therefore, might need to be modified; and
  • Increase in the use of technology: Auditors are increasing their use of technology when designing and performing audit procedures, including substantive analytical procedures.

Staff analysis will take into account observations from the Board’s oversight activities, audit firms’ methodologies, available academic research, the activities of other standard setters and regulators, and information from investors and other stakeholders.



The staff is analyzing relevant information and developing a proposal for the Board’s consideration.