Which of the Following Analytical Procedures Should Be Applied to the Income

Multiple Choice

Which of the following analytical procedures should be applied to the income statement?

A) Ascertain that the net income amount in the statement of cash flow agrees with the net income amount in the income statement.
B) Select sales and expense items and trace amounts to related supporting documents.
C) Compare the actual revenues and expenses with the corresponding figures of the previous year and investigate significant differences.
D) Obtain from the proper client representatives the beginning and ending inventory amounts that were used to determine costs of sales.