Hardman and Jennings,LLP,an audit firm,compares bad debt expense of a client in the current period to bad debt recorded for the past three periods.Hardman and Jennings is performing which type of analysis?
A)trend
B)ratio
C)critical
D)reasonableness

Question

Quizplus · Accepted Answer

Hardman and Jennings, LLP is comparing the bad debt expense of the current period to bad debt recorded for the past three periods, which is a trend analysis. This type of analysis involves examining changes in data over time to identify any patterns or trends that may be significant. Trend analysis can help auditors identify potential areas of risk or inconsistencies that need further investigation.

Hardman and Jennings,LLP,an Audit Firm,compares Bad Debt Expense of a Client