Which of the Following Is Accurate Regarding the Comparison of Client

question 2

Multiple Choice

Which of the following is accurate regarding the comparison of client data?

• A)Since budgets are only projections,auditors can ignore the differences between budgeted and actual results.
• B)One approach to overcome the limitations of industry averages is to compare the client to one or more benchmark firms in the industry.
• C)It is impractical to relate one account balance to another balance sheet or income statement account.
• D)it is extremely difficult to get industry data for comparative purposes.

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