The Most Effective and Efficient Audit Approach in the Examination

question 4

Multiple Choice

The most effective and efficient audit approach in the examination of the income statement would be which of the following?

• A) Examination of income statement accounts concurrently with the related balance sheet accounts.
• B) Compare company's components of net income to other businesses in the same industry.
• C) Compare company's components of net income to the previous two years.
• D) Examine changes in all balance sheet accounts.

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