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Analytical procedures are used as risk assessment procedures, while ASA 520 stipulates their use as substantive procedures. The standards also show the nature and purpose, extent of reliance on analytical procedures and following investigation of unusual items identified.
Using the financial statements/ report of the entity you chose:
Identify and briefly describe three ways you could use analytical procedures as risk assessment procedures,
Identify and briefly describe three ways you could use analytical procedures as substantive procedures through the audit.
This needs you to use the material from your selected entity to illustrate the application of ASA 315 and ASA 520 in the application of Analytical Procedures to the audit process.
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