Final answer:
The PCAOB identified deficiencies including an overreliance on management representations, the need for better alignment with industry benchmarks, and the importance of timely execution of procedures during analytical audits.
Step-by-step explanation:
The Public Company Accounting Oversight Board (PCAOB) has identified various deficiencies in the application of analytical procedures by auditors. One significant deficiency is an overreliance on management representations without sufficiently corroborating the information provided. Auditors are expected to maintain professional skepticism and perform sufficient procedures to validate the accuracy and completeness of the information supplied by management as part of their audit. The PCAOB has also found that in some cases, there is not a proper alignment with industry benchmarks, which might suggest that auditors are not effectively considering relevant external data when performing their analyses. Moreover, some deficiencies relate to the timely execution of procedures, indicating that analytics are not being performed at the right stages of the audit to provide meaningful insights or detect possible material misstatements.