If we were to compare the financial statements of Royal Bank of Canada for 2011 with that of Bank of Montreal,this would be:

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Comparing the financial statements of two different banks for a specific time period is a cross-sectional analysis. This type of analysis is used to evaluate the financial performance and position of two or more companies at the same point in time. An external audit involves the examination of financial statements by an independent auditor. An internal audit is conducted by the internal audit department of a company to evaluate the effectiveness of its internal controls. A time series analysis involves comparing the financial statements of the same company over multiple time periods.

If We Were to Compare the Financial Statements of Royal