The auditor generally gives most emphasis to ratio and trend analysis in the examination of:
A) retained earnings.
B) income.
C) financial position.
D) cash flows.

Question

Quizplus · Accepted Answer

Ratio and trend analysis is most commonly used in examining income, as it helps auditors assess the company's performance over time and identify any unusual fluctuations or trends in revenue and expenses.

The Auditor Generally Gives Most Emphasis to Ratio and Trend