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Case: Preliminary analytical reviews are performed to obtain an understanding of the business and its environment. Analytical procedures are an important part of the audit process and are applied during the planning stages of the audit. Prepare a report addressing the following questions:
Question 1: How might an auditor effectively use preliminary analytical procedures in the audit of various expense accounts, such as miscellaneous expenses?
Question 2: How might this enable the auditor to better understand the business and its environment?
Question 3: How do computer-assisted procedures impact this audit?
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