Explain the term analytical review?

Analytical Review: 

• The extent of reliance that an auditor places on the results of analytical review procedures depend on includes materiality of the items involved, assessment of inherent and control risks, etc
• It also includes the studying of significant ratios and trends and the investigation of any unusual fluctuation and items whether in the Income Statement or Balance Sheet .Purposes of Analytical Review: 
• To assist the auditor in planning the nature, timing and extend of other audit procedures
• As substantive procedures when their use can be more effective or efficient than tests of details in reducing detection risk for specific financial statement assertion
• As an overall review of the financial statements in the final review stage of the audit