The Most Effective and Efficient Audit Approach in the Examination

Multiple Choice

The most effective and efficient audit approach in the examination of the income statement would be which of the following?

A) Examine income statement accounts concurrently with the related balance sheet accounts.
B) Compare company's components of net income to other businesses in the same industry.
C) Compare company's components of net income to the previous two years.
D) Examine changes in all balance sheet accounts.