The primary difference between an audit of the balance sheet and an audit of the income statement is that the audit of the income statement deals with the verification of:

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The income statement is focused on transactions that occurred during a given period of time (e.g. a month or year), so the audit of the income statement involves verifying the accuracy and completeness of recorded transactions that correspond to the reported revenue and expenses. The audit of the balance sheet, on the other hand, deals with verifying the ending balances of the company's assets, liabilities, and equity accounts as of a specific date.

The Primary Difference Between an Audit of the Balance Sheet