Analytical review applications among large audit firms in Hong Kong

Considerations for time, cost, and audit comfort in completing audit engagements have gradually led to extensive use of analytical review (AR) in external audits by large accounting firms in Hong Kong. AR is now being used by auditors as “attention‐directing” at the planning stage, “test‐reducing” at the fieldwork stage, and an overall reasonableness check in arriving at the true‐and‐fair decision at the final review stage. Greater reliance on AR has long been predicted in the auditing literature as an inevitable future trend. Empirical findings on auditors attesting to the extensive use of AR in Hong Kong are simply visible manifestations of the profession’s adjustment to the global movement.