Horizontal analysis is useful for which of the following reasons:

Multiple Choice Allows us to focus on both material and immaterial items which may have important implications

It largely cuts down on the work that the external auditor performs which ultimately means large cost savings for the company

If prepared properly, it can be done on a three-year rotation so there are huge time savings

It converts the income statement to percentages so that changes in relationships can be determined

None of the other alternatives are correct