Please explain what is Planning Analytical Procedures? Please help to understand how to complete the task in the below situation. What should be done? This is for an auditing course.

How should an auditor perform planning and substantive analytical procedures for accounts in the acquisition and payment cycle? Assuming that the current period's (2015) financial information is unaudited, but the information from the previous period (2014) has been audited. Consider the following trends and characteristics and briefly explain:

A. Following many years of dominant financial performance by companies in the United States, Europe, and Canada, increased competition is arising from organizations in emerging economies such as Brazil, India, and China.

B. Significant uncertainty exists in the industry due to regulations covering healthcare and government reimbursements related to certain procedures and prescribed pharmaceuticals.

C. Policymakers in the industry and governments increasingly:

D. Mandate necessary prescripts for patients

E. Focus on prevention instead of treatment regimes, thereby leading to changes in demand for some products

F. Anticipated growth in the industry is expected to be 5% to 7% in 2016 compared with 4% to 5% in the prior year as stated by leading industry analysts.

G. The company's credit policies have remained the same over the past several years. Their credit policies are considered stringent in their industry, and they have been criticized on occasion for these policies in relation to their competitors.

H. Two of the company's most popular pharmaceuticals, Sistosis and Vigarvox, are no longer patented as of the last quarter of 2015 and are now facing competition from generic alternatives.

Information specific to the Acquisition and Payment Cycle

• Raw materials inventory required in the businesses are purchased from numerous suppliers. No serious shortages or delays of raw materials inventory were encountered in 2015, and none are expected in 2016. PharmaCorp has successfully secured the raw materials inventory necessary to meet its requirements where there have been short-term imbalances between supply and demand, but generally at higher prices than those historically paid.
• A risk that companies in this industry face with respect to the acquisition and payment cycle is that there is a possibility of failing to maintain the integrity of supply chains, possibly resulting in intentional and criminal acts such as product diversion, product theft, and counterfeit raw materials inventory.
• In response to pricing pressure, several major suppliers changed their policy with respect to discounts for early payment of amounts due on credit sales. In response, the company changed its policy of paying within two weeks to paying within four weeks since it is no longer monetarily beneficial to do so from a cash management perspective.

Step 1: Identify Proper Analytical Procedures.

Step 2: Evaluate the Data Reliability When Developing Expectations.

Step 3: Develop expectations for accounts in the acquisition cycle and for the ratios from Step # 1 as relevant.

Consolidated financial statements are not attached. Please only explain how to start to complete this assignment and what should be considered.