An auditor is performing an analytical procedure that involves comparing a client's account balances over time.This technique is referred to as:
A)Vertical analysis.
B)Horizontal analysis.
C)Cross-sectional analysis.
D)Comparison analysis.

Question

Quizplus · Accepted Answer

Comparing a client's account balances over time is referred to as horizontal analysis. Vertical analysis involves comparing account balances to a base such as sales or total assets. Cross-sectional analysis involves comparing the financial data of one organization to that of another organization at the same point in time. Comparison analysis is too broad and could refer to any type of comparison between financial data.

An Auditor Is Performing an Analytical Procedure That Involves Comparing