Which of the following was first in the evolution of auditing approaches?
A) Business risk approach.
B) Transactions cycle approach.
C) Statement of financial position approach.
D) Financial risk approach.

Question

Quizplus · Accepted Answer

The statement of financial position approach, also known as the balance sheet approach, was the first auditing approach to be developed. This approach focused on ensuring that the financial statements presented a true and fair view of the company's financial position, and it involved detailed testing of all balance sheet accounts. The other approaches listed (business risk, transaction cycle, and financial risk) were developed later as auditors began to address broader issues related to the client's business and operations.

Which of the Following Was First in the Evolution of Auditing