^good advice so limit my response to your question on effects of NOT removing it.
You indicated it was on the sides of the cpu, you did get it off the top before reapplying.
If on top remove HSF and reclean, reapply. The "old" paste will prevent good contact of new paste with surfaces of CPU and HS resulting in higher temps.
On the sides - If not on pins or traces, I would not sweat it to much.
If paste is beween pins, or Motherboard traces:
Most paste, including AS5, is nonconductive, HOWEVER it is capacitive. This means that if it was between to Power traces (ie across the +12V and ground), no effect. Howver if it was across a signal pin and ground, if the signal is High frequence (ie Bus freq) then it could shourt the signal out and overload the circuit that generated the signal.
Added: there are 2 types of alcohol sold, one is 70% (the other 30 % is water) and then there is 91% - go for the 91%
Me - I have a source for 100% which is what I use.