When several irregularities are found in the financial information, it is critical to perform an analytical review that provides a broader perspective on the firm's financial health. Comparing the firm's financial performance with organizations in the same industry helps identify anomalies and trends that may indicate irregularities.
This benchmarking approach can highlight unusual deviations from industry norms, which may signal errors or potential fraud. References:
* "Internal Auditing: Assurance & Advisory Services" (The Institute of Internal Auditors)
* "Auditing and Assurance Services" (Messier, Glover, Prawitt)