When Comparing Client Data with Similar Prior-Period Data

question 142

Multiple Choice

When comparing client data with similar prior-period data,

• A) if there have been no significant changes in the client's operations in the current year, much of the detail making up the totals in the financial statements should remain unchanged.
• B) comparison of details must take the form of details over time.
• C) comparing totals with previous years considers growth in the business activity.
• D) percent relationships fail to consider declines in the business activity.

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Definitions:

Complex Process

A procedure or task that involves multiple steps, variables, or elements, making it difficult to understand or execute.

Communication Model

A theoretical framework that describes the process of exchanging information, including elements such as sender, message, medium, receiver, and feedback.

Ethical Decision

A choice made based on moral principles and values, considering the impact on all stakeholders involved.

Transparency

Refers to the quality of being easily seen through or detected; in business and governance, it often implies openness, communication, and accountability.