Using Audit Sight for Review Engagements

Overview

Audit Sight supports financial statement review engagements by providing a structured, data-driven approach to performing analytical procedures and documenting conclusions.

At the center of this workflow is the Planning + Review Analytics Module, which drives the analytical process by transforming raw financial data into actionable insights for investigation and conclusion.

This article outlines how to use Audit Sight throughout a review engagement, from data preparation through final analytics and documentation.

For a full breakdown of module functionality and features, see:
https://support.auditsight.com/hc/en-us/articles/39272114989581-Audit-Review-Analytics-Module-Overview

For common questions and edge cases, see:
https://support.auditsight.com/hc/en-us/articles/39277057824269-Audit-Review-Analytics-FAQs

How Audit Sight Fits into a Review Engagement

In a review engagement, analytical procedures are the primary method used to assess financial reasonableness.

Audit Sight enables teams to:

• Perform comparative analytics across periods
• Identify significant fluctuations requiring inquiry
• Support management inquiry and evaluation
• Document conclusions in a consistent, defensible format

Instead of relying on manual spreadsheets or “eyeballing” financials, Audit Sight provides a repeatable, structured workflow that improves both efficiency and audit quality.

Required Data

General Ledger (Two Periods Required)

To perform review analytics in Audit Sight, you must upload:

• A general ledger for the current period
• A general ledger for a comparable prior period

This enables the system to generate comparative analytics, including Year-over-Year change tracking.

Recommended data includes:

• Account numbers
• Account descriptions
• Transaction-level detail (preferred)

Important:
Without two periods of data, comparative analytics cannot be generated, significantly limiting the ability to perform effective review procedures.

Structuring Your Analysis: Private vs. Public Companies

Audit Sight supports flexible period comparisons, but review engagements typically follow these structures:

• Private company reviews focus on annual trends and consistency
• Public/interim reviews require more granular, quarterly analysis

Review Engagement Workflow in Audit Sight

Workflow Overview

Upload Data → Generate Workpaper → Analyze Trends → Investigate Variances → Document Conclusions

1. Upload Financial Data

Upload general ledger data for both the current and prior periods to establish the foundation for analysis.

2. Generate Review Analytics

From the Engagement dashboard, request a workpaper using the Planning + Review Analytics Module.

This is the core step where Audit Sight performs the analytical procedures, automatically generating comparative insights across periods.

3. Analyze Financial Results

Review the generated analytics to evaluate:

• Changes in account balances across periods
• Relationships between financial statement line items
• Trends and patterns that may indicate risk or inconsistency

The module provides structured outputs (such as comparative views and visualizations) to help quickly surface areas that require attention.

4. Identify Fluctuations Requiring Inquiry

Focus on accounts with:

• Significant dollar or percentage changes
• Unexpected or inconsistent trends
• Relationships that do not align with expectations

Examples of fluctuations that may require investigation:

• Revenue increased 35% YoY while customer volume remained flat
• Rent expense decreased significantly with no known lease changes
• Gross margin shifted materially without a corresponding change in pricing or costs

These types of fluctuations form the basis for required inquiry in a review engagement.

5. Perform Inquiry and Evaluate Responses

For each identified fluctuation:

• Obtain explanations from management
• Assess whether explanations are reasonable and supported
• Consider whether additional follow-up is necessary

6. Document Conclusions

Use the analytics and supporting explanations to document whether:

• Financial results are reasonable in context
• Identified fluctuations are adequately explained
• Any additional procedures are required

Audit Sight provides a consistent structure for linking:

• Identified variances
• Supporting explanations
• Final conclusions

Why Use Audit Sight for Review Engagements

• Eliminates manual analytics: No more spreadsheet-based YoY calculations
• Reduces subjectivity: Moves away from judgment-based “eyeballing” of financials
• Improves consistency: Standardized approach across all engagements
• Strengthens documentation: Clear, defensible linkage between analytics and conclusions
• Surfaces risk faster: Quickly identify areas requiring inquiry

Best Practices

• Upload complete and consistent GL data for both periods
• Ensure account structures align across periods for accurate comparisons
• Focus on meaningful thresholds when evaluating fluctuations
• Thoroughly document all explanations and conclusions, as review engagements rely heavily on analytical support

Summary

Audit Sight enables teams to perform review engagements more efficiently by:

• Providing a structured workflow for analytical procedures
• Using the Planning + Review Analytics Module as the core analytical engine
• Supporting identification, investigation, and documentation of financial fluctuations

This approach replaces manual processes with a streamlined, standardized, and defensible review workflow.