Which of the following analytical procedures should be applied to the profit and loss statement?

(a) Select sales and expense items and trace amounts to related supporting documents.

(b) Ascertain that the net profit in the statement of cash flows agrees with the net profit in the profit and loss statement.

(c) Obtain from the client the beginning and ending stock amounts that were used to determine the costs of sales.

(d) Compare the actual revenues and expenses with the corresponding figures of the previous year, and investigate significant differences.

Choose the best answer