Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 94

An internal auditor wants to compare performance information from one quarter to another. Which analytical procedure would the auditor use?

Answer options

Correct answer: A

Explanation

Ratio analysis is the correct choice as it enables the auditor to evaluate and compare financial data across different periods by establishing relationships between various figures. Trend analysis, while useful, focuses more on patterns over time rather than direct comparisons between specific quarters. Vertical analysis looks at financial statements in terms of percentages of a total, and benchmarking analysis compares performance against industry standards, neither of which directly addresses the auditor's need to compare quarterly performance.