An audit of historical financial statements most commonly includes the:
A) balance sheet, statement of retained earnings, and the statement of cash flows.
B) income statement, the statement of cash flows, and the statement of net working capital.
C) statement of cash flows, balance sheet, and the statement of retained earnings.
D) balance sheet, income statement, and the statement of cash flows.

Question

Quizplus · Accepted Answer

The most common components of a financial statement audit are the three primary financial statements: the balance sheet, income statement, and statement of cash flows. The statement of retained earnings may also be included as it is closely related to the income statement. The statement of net working capital is not a primary financial statement and is not typically audited.

An Audit of Historical Financial Statements Most Commonly Includes The