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Why is it important for auditors to use analytical comparisons such as the ratios in the...

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Accounting

Why is it important for auditors to use analyticalcomparisons such as the ratios in the Sunbeam case to evaluatepossible red flags that may indicate additional auditing isrequired? How does making such calculations enable auditors to meettheir ethical obligations

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Analytical procedures involve evaluations of financial statement information by a study of relationships between financial and nonfinancial date A basic premise using these procedures is that relationships among the data may exist Auditors can use these relationships to obtain evidence about the reasonableness of the financial statement amounts    See Answer
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Why is it important for auditors to use analyticalcomparisons such as the ratios in the Sunbeam case to evaluatepossible red flags that may indicate additional auditing isrequired? How does making such calculations enable auditors to meettheir ethical obligations

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