Analytical procedures are used extensively in practice, but they will not help the auditor in assessing an audit client's ability to continue as a going concern.

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Analytical procedures are one of the tools that an auditor uses to assess the going concern assumption. Analytical procedures can help the auditor to identify areas of concern which need further investigation. For example, if the auditor observes significant fluctuations in key ratios such as the current ratio or the debt-to-equity ratio, this may indicate that the company is experiencing financial difficulties. However, the auditor cannot rely solely on analytical procedures to assess the going concern assumption, and must also consider other factors such as management's plans for the future, current economic conditions, and other relevant information.

Analytical Procedures Are Used Extensively in Practice, but They Will