M/s RSP & Associates, a firm of Chartered Accountants, has been engaged to conduct a review of the financial statements of AR Pvt. Ltd. for the…

As per SRE 2400, “Engagements to Review Historical Financial Statements", In a review of financial statements, performing analytical procedures assists the practitioner in: (i) Obtaining or updating the practitioner's understanding of the entity and its environment, including to be able to identify areas where material misstatements are likely to arise in the financial statements. (ii) Identifying inconsistencies or variances from expected trends, values or norms in the financial statements such as the level of congruence of the financial statements with key data, including key performance indicators. (iii) Providing corroborative evidence in relation to other inquiries or analytical procedures already performed. (iv) Serving as additional procedures when the practitioner becomes aware of matters that cause the practitioner to believe that the financial statements may be materially misstated.