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ACC 410 Week 2 Assignment Analytical Procedures Download here:Download here: Analytical Procedures. In a 2-3 page paper, complete the case below and submit to instructor. Review the income statement for Uden Supply Company and answer the following: 1. Describe the purpose of analytical procedures performed in the planning stage of the audit. 2. Uden Supply has projected its 2004 gross profit at 31% of sales despite expectation for some shrinkage in margins. On the basis of Uden's operating performance in years 2001 - 2003 project your best guess for 2004. Project 2004 based on the incremental changes for each line item over the last three years. 3. Uden’s unaudited financial statements for the current year show a 31 percent gross profit rate. Assuming that this represents a misstatement from the amount that you developed as an expectation, calculate the estimated effect of this misstatement on net income before taxes for 20X4. 4. Indicate whether you believe that the difference calculated in part (c) is material. Explain your answer. (50-100 words). Comparative income statement information for Uden Supply Company is presented in the accompanying table. UDEN SUPPLY COMPANY Comparative Income Statement Years Ended December 20X1, 20X2, and 20X3 (Thousands) 13 ACC410: Auditing Online 20X1 Audited 20X2 20X3 20X4 Audited Audited 9,400 10,100 6,500 7,000 2,900 3,100 660 710 190 202 1,082 1,103 192 199 174 181 61 62 63 66 28 30 22 23 37 40 13 14 228 240 150 230 Expected Sales 8,700 Cost of goods sold Gross profit 6,000 2,700 Sales Commissions Advertising 175 Salaries 1,061 Payroll taxes Employee benefits Rent Depreciation Supplies


Utilities Legal and accounting Miscellaneous Interest expense Net income before taxes 610 184 167 60 60 26 21 34 12 210 80 Incomes taxes 18 33 50 Net income 62 117 180


Acc 410 week 2 assignment analytical procedures