Detailed Explanation:
Rationale for Correct Answer: Horizontal analysis evaluates financial statement items over multiple periods, highlighting percentage changes from one period to another. This helps detect unusual trends or anomalies.
Analysis of Incorrect Options:
A – Describes vertical analysis (common-size statements).
B – Describes ratio analysis.
D – Describes benchmarking/comparative analysis across companies.
Key Concept: Analytical procedures – horizontal vs. vertical and ratio analysis.
[Reference: ACFE Manual, Accounting Concepts – Analytical Review Techniques., , ]
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