THEORETICAL FRAMEWORK FOR APPLYING ANALYTICAL PROCEDURES IN INTERNAL AUDIT

Abstract

This article analyzes the significance and effectiveness of using analytical procedures in the internal audit process of business entities. Analytical procedures enable internal auditors to identify and assess risks, examine the internal control system, and ensure the accuracy and reliability of financial reporting. The article discusses key analytical methods such as trend analysis, ratio analysis, regression analysis, and Benford's Law analysis. Additionally, it explores the stages of applying analytical procedures in internal auditing, their advantages, and potential limitations. The study substantiates the possibility of risk management, efficiency improvement, optimal resource utilization, and achieving strategic goals through analytical procedures. The article highlights the importance of analytical methods in ensuring a more efficient and precise internal audit process.