A CPA is performing the audit examination of a new audit client. Because the CPA has not audited this client in previous years, it is interested in identifying areas that are likely to contain material misstatements in the financial statements during the current year audit. In preparing for this audit examination, assume the CPA has consulted the appropriate SASs and identified various characteristics that can result in misstatements in the financial statements. In addition, the CPA has considered applying analytical procedures in the planning stages of the audit examination REQUIRED: (1)What factors should the CPA consider in identifying the overall potential for misstatements in the client's financial statements? Group these factors by category and identify how they would affect the potential for misstatements Define analytical procedures. What is the purpose of performing analytical procedures in the planning stages of the audit? What are five methods that can be used by the auditor to determine the expected value for use in performing analytical procedures? For each of these methods, give one possible example of how the CPA could calculate the expected balances for the client's accounts receivable (2) (3) (4)