1PLASPM - assets. These possibilities will be considered...

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Peach Blossom Cologne Company Preliminary Analytical Procedures Summary December 31, 2009 PL-AS The purpose of this memo is to summarize the results of the analytical procedures performed on the Peach Blossom Cologne Company unadjusted financial information. A. Accounts Requiring Attention Our decision rule for selecting accounts for further examination is based on 5% of pretax income rounded to $16,000 or 25%. B. Analysis of Questionable Accounts C. Assessment of the Risk of Financial Failure D. Overall Appraisal of Audit Risk Given the strong overall financial condition of the client, there appears to be low audit risk associated with the engagement. Assets appear to be underutilized, although, it could be indicative of overstated
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Unformatted text preview: assets. These possibilities will be considered while examining the asset accounts. Also, the higher than normal current and quick ratios may be a result of understated liabilities. Peach Blossom Cologne Company Planning Memorandum December 31, 2009 PL-PM In planning the audit engagement for Peach Blossom Cologne Company for the year ended December 31, 2009, the following matters have been considered: (1) The objective of this engagement is to render an opinion on the financial statements. In the past, we have been able to render an unqualified opionion....
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1PLASPM - assets. These possibilities will be considered...

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