Analytical proceduresAnalytical procedures mean any procedures done by the auditor to make analysis regarding thefinancial statements of the organization. Analytical procedures are of two types one ispreliminary analytical procedures and other is substantive analytical procedures. Preliminaryanalytical procedures are performed for planning nature, time and extant of substantiveprocedures required in the performance of the audit. On the other hand, substantive proceduresare extensive procedures which include ratio analysis, trend analysis and comparative analysis offinancial statements. Results of substantive procedures help the auditor in planning audit[ CITATION Aud09 \l 1033 ]. In the present case company under consideration, Double ink printers limited is a companyworks in printing industry providing serives of printing on demand as well as e-books withpublishers titles, to its clients. The background information of Double ink printers limitedindicate various factors which required to take into consideration by the auditor during theplanning of audit. Some activities which required special consideration are,a.Recording of inventory value as well as accounts payble by the same personb.Indicating factor for impairment of assets purchased from Nuclear Publishing limited inlast yearc.Entrance in new loan with two specific conditionsd.Change of chief executive officer and establishment of new internal audit depatmente.Change of external auditorf.Implementation of new IT system with insufficient staffg.No allowance for inventory obsolescence h.Allowance for inventory obsolescence made in previous years, written backi.Change in method of inventory valuation from average cost inventory valuation to first infirst out based inventory valuationj.Change in estimated regarding the depreciable life of printing press by incereasingdepreciable life, due to this depreciation expenses per year will declinek.E-book revenue recognization without completion of revenue genration process

+13062052269

info@desklib.com