The auditor generally gives most emphasis to 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

Ratio and trend analysis is most commonly used in examining the Income Statement as it helps in assessing the company's performance, profitability, and operational efficiency over time.

The Auditor Generally Gives Most Emphasis to Ratio and Trend