Place the following steps involved in financial statement analysis in the proper order:
I.Read the auditor's report
II.Perform detailed ratio analysis
III.Read each of the major financial statements
IV.Obtain an overall understanding of a company's range of businesses
A)IV, I, III, II
B)I, II, III, IV
C)I, III, IV, II
D)IV, III, I, II

Question

Quizplus · Accepted Answer

The proper order starts with obtaining an overall understanding of the company's business (IV), then reading the auditor's report for any qualifications (I), followed by reading the financial statements to understand the financial position (III), and finally performing detailed ratio analysis to assess financial health (II).

Place the Following Steps Involved in Financial Statement Analysis in the Proper