As you know, you are a part of the Department for New Audit Client Research of a national audit & assurance firm RAA LLP. The PIC is interested in your group conducting some additional planning-level audit steps related to the cvs Pharmacy.
a) What are the Professional Standards and Guides Directly Relevant to using Advanced Analytics?
B)Prepare a summary of recent research on advanced analytical methods in F/S auditing emphasizing what our audit team can apply to actual audits. Begin your review with the classic study published by Stringer [1975] published in the Journal of Accounting Research.
C)[ Simple Trend-line Regression]: Using a simple regression approach:
Determine an unaudited amount for total 2014 revenues based on the 3 quarters of unaudited data available and an estimate of fourth quarter using same increase from 3rd quarter as in 2013