11.51 The audit team may identify risks where the risk of material misstatement is so low that analytical procedures alone will provide an appropriate response to the risks identified. When an analytical procedure is used as the primary substantive test of a risk, the audit team should document all of the following:
– the expectation, unless it is apparent from the documentation of the work performed, and factors considered in its development
– results of the comparison to recorded amounts or ratios developed from recorded amounts
– additional auditing procedures performed in response to the significant unexpected differences arising from the analytical procedure and the results of such other procedures
– corroborating evidence obtained to support unexpected variances