Which of the following is least effective while searching for anomalies?
A) Comparing account balances in the statements from one period to the next.
B) Calculating key ratios and comparing them from one period to the next.
C) Performing horizontal analysis.
D) Performing vertical analysis.

Question

Quizplus · Accepted Answer

Comparing account balances in the statements from one period to the next may not reveal all anomalies because some transactions may not affect account balances directly or may be spread across different accounts. The other options, calculating key ratios, performing horizontal analysis, and performing vertical analysis, are more effective methods for identifying anomalies.

Which of the Following Is Least Effective While Searching for Anomalies