The auditor generally finds more predictability in the ratio and trend analysis in the examination of the:
A)Statement of Changes in Stockholders' Equity and Retained Earnings.
B)Income Statement.
C)Balance Sheet.
D)Statement of Cash Flows.

Question

Quizplus · Accepted Answer

The Income Statement typically shows a company's revenues, expenses, and profits over a period of time, allowing for more predictable and consistent trend analysis and ratio calculations compared to the other financial statements which may have more variable elements.

The Auditor Generally Finds More Predictability in the Ratio and Trend