Empirical Evidence on the Changing Role of Analytical Review Procedures.

Abstract Although analytical review procedures (ARPs) have received much attention from accounting researchers and practitioners, little documentation of the actual use of such procedures exists in the accounting literature. This paper presents the results of a study that examines evidence on the use of ARPs in actual audits as provided by audit managers from the review of their own working paper documentation. Evidence is provided for the current contribution of ARPs in the audit process, by audit area and the nature of the procedure (i.e., nonquantitative, simple quantitative, or advanced quantitative). Evidence is also presented that supports the contention that the use of ARPs increased between 1978 and 1982. Finally, the auditors participating in the study provide some comments concerning the future use and contribution of ARPs in the audit process.