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Exam IIA-CIA-Part3 topic 2 question 66 discussion

Actual exam question from IIA's IIA-CIA-Part3
Question #: 66
Topic #: 2
[All IIA-CIA-Part3 Questions]

An internal auditor considers the financial statement of an organization as part of a financial assurance engagement. The auditor expresses the organization's electricity and depreciation expenses as a percentage of revenue to be 10% and 7% respectively. Which of the following techniques was used by the internal auditor in this calculation?

  • A. Horizontal analysis.
  • B. Vertical analysis.
  • C. Ratio analysis.
  • D. Trend analysis.
Show Suggested Answer Hide Answer
Suggested Answer: C 🗳️
by tinanina at April 16, 2021, 6:18 p.m.

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Elvin
2 months, 1 week ago
Selected Answer: B
B is the correct answer. Please update this admin.
upvoted 2 times
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[Removed]
1 year, 8 months ago
Vertical analysis is a method of analyzing financial statements that list each line item as a percentage of a base figure within the statement. The first line of the statement always shows the base figure at 100%, with each following line item representing a percentage of the whole
upvoted 2 times
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Mman
2 years, 4 months ago
B is correct, gleim, study unit 10, last page
upvoted 2 times
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anjie2021
2 years, 9 months ago
a is correct
upvoted 1 times
superman26
2 years, 9 months ago
why is A? could you explain? thanks
upvoted 1 times
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Walewweeeed
2 years, 9 months ago
B is correct,
upvoted 4 times
superman26
2 years, 9 months ago
why is B? could you explain? thanks
upvoted 2 times
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tinanina
3 years ago
Why not B?
upvoted 2 times
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B (20%)
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