ASH ACC 410 Week 2 Assignment Analytical Procedures Check this A+ tutorial guideline at

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ASH ACC 410 Week 2 Assignment Analytical Procedures Check this A+ tutorial guideline at procedures 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: a. Describe the purpose of analytical procedures performed in the planning stage of the audit. b. 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 project your best guess for Project 2004 based on the incremental changes for each line item over the last three years. c. 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. d. Indicate whether you believe that the difference calculated in part (c) is material. Explainyouranswer. ( words). Comparative income statement information for Uden Supply Company is presented in the accompanying table. UDEN SUPPLY COMPANY ComparativeIncomeStatement Years Ended December 20X1, 20X2, and 20X3 (Thousands) 20X1 Audited 20X2 Audited 20X3 Audited 20X4 Expected Sales 8,700 9,400 10,100 Costofgoodssold 6,000 6,500 7,000 Grossprofit 2,700 2,900 3,100 SalesCommissions Advertising Salaries 1,061 1,082 1,103 Payrolltaxes Employeebenefits

Rent Depreciation Supplies Utilities Legalandaccounting Miscellaneous Interestexpense Netincomebeforetaxes Incomestaxes Netincome For more classes visit