Analytical procedures have always been a key element of the audit process as the auditors assess...

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Accounting

Analytical procedures have always been a key element of theaudit process as the auditors assess key ratio trends as well asthe relationship between various accounts on the financialstatements. However, in recent years, many experts have identifiedspecific ratios which tend to point towards an entity’s “quality ofearnings.” Class, do a bit of research and see if you can find someof those ratios that indicate earnings quality and/or earningsmanipulation. Can you describe two that you feel would beespecially helpful?

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the following procedures that you feel would be especially helpfull analytical procedures which consists of significant ratios and trends and investigating unusual fluctuations and items during the course of audit analytical    See Answer
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