Before Expressing an Opinion Concerning the Results of Operations, the Auditor

question 4

Multiple Choice

Before expressing an opinion concerning the results of operations, the auditor would most likely proceed with the examination of the income statement by

• A) Applying a rigid measurement standard designed to test for understatement of net income.
• B) Analyzing the beginning and ending balance sheet inventory amounts.
• C) Making net income comparisons to published industry trends and ratios.
• D) Examining income statement accounts concurrently with the related balance sheet accounts.