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Question - You are the audit manager in charge of auditing the accounts of Jamieson Ltd. Materiality for the audit has been set at $250,000. The balance date was 30 June 2020. It is the 18th of August 2020 and you are at the client's premises to undertake the audit. Depreciation expense was been calculated by the client as $3,350,000.
Required -
a) Explain how you would verify this balance using analytical procedures.
b) What verification work do you need to perform on the data used in these analytical procedures?
c) How much reliance would you place on the results from your analytical procedures? Include in your answer appropriate justifications.
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