L9 Notes_Part_5 - Purpose Assess going concern Secondary...

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Analytical Procedures: When? 1. Planning Phase A. Required B. Who? C. Goal: to assist in planning (attention directing) D. Location 2. Substantive Testing Phase: (Story: Jim Fullerton E&Y) A. Optional B. Who? C. Goal is to determine the validity of an account balance or set of balances. 3. Overall Review Phase: A. Required B. Who? C. Purpose?
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Timing and Purposes of Analytical Procedures PHASE PURPOSE (Required) Planning Phase (Optional) Testing Phase (Required) Completion Phase Understand client’s industry and business Primary
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Unformatted text preview: Purpose Assess going concern Secondary Purpose Secondary Purpose Indicate possible misstatements (attention directing) Primary Purpose Secondary Purpose Primary Purpose Reduce detailed tests Secondary Purpose Primary Purpose Analytical Procedures: How? Developing analytical procedures is a 4-step process (1) the development of an expectation (2) the identification of fluctuations (3) the investigation of material fluctuations (4) the evaluation of the likelihood of material misstatements being present in the F/S...
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L9 Notes_Part_5 - Purpose Assess going concern Secondary...

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