Why Does the Auditor Divide the Financial Statements into Smaller

question 95

Multiple Choice

Why does the auditor divide the financial statements into smaller segments?

• A) Using the cycle approach makes the audit more manageable.
• B) Most accounts have few relationships with others and so it is more efficient to break the financial statements into smaller pieces.
• C) The cycle approach is used because auditing standards require it.
• D) All of the above are correct.