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Analytical procedures may be particularly useful in identifying unusual transactions and balances that may represent specific risks relevant to auditing receivables and revenues. Analytical procedures frequently highlight relationships between accounts and risks not otherwise apparent during the risk assessment phase of an audit.
a) What are the two reasons auditors performs analytical procedures specifically directed at revenue?
b) T/F - Analytical procedures are helpful in providing assurance that sales and accounts receivable are neither understated nor overstated.
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