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Planning Analytical Procedures
&
Triangle Manufactured Homes
Tim Bauer
ACCY 405
October 26, 2011

Announcements
Individual Writing Assignment
Monday, October 31
Midterm Exam #2 – Wednesday, November 2

Today’s Objectives
•
Final tips for the Individual Writing Assignment
•
GT8: Triangle Manufactured Homes – Part 2
• Financial Analysis, Audit Risk Assessments, Going Concern
& Fraud Risks
•
The value of analytical procedures in audit planning
•
Group Activity: Norton Wire Manufacturing
–
Overview of Module II

GT8: Triangle Manufactured Homes (TMH) – Part 2
Financial Analysis, Audit Risk Assessments, Going Concern & Fraud Risks

Planning Analytical Procedures

Overview of the Audit Process
Client Acceptance and Retention
Understand
Client’s
Business Environment
& Strategy
Evaluate
Control Response
to Risks & Internal Control
Over Financial Reporting
Preliminary
Analytical
Procedures
Knowledge Acquisition of Current Conditions
Audit Completion and Reporting
Planning Tests of Financial Statement Assertions & Internal Controls
Tests of Financial Statement Assertions & Control Effectiveness

Purposes of Analytical Procedures
(1)