The results of analytical procedures performed while auditing the sales and collection cycle are used to determine the level of planned tolerable misstatement for accounts receivable balance-related audit objectives.

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Analytical procedures are used to assess the level of risk and determine the planned tolerable misstatement for various financial statement assertions. In the sales and collection cycle, these procedures are used to assess the reasonableness of sales, allowances, returns, and uncollectible accounts. Any significant deviations from the expected results can indicate potential material misstatement, which may require further investigation or adjustment. Ultimately, the level of planned tolerable misstatement will depend on the auditor's assessment of materiality, inherent risk, control risk, and the results of the audit procedures performed.

The Results of Analytical Procedures Performed While Auditing the Sales