Final answer:
Trend analysis in business is the comparison of financial information across different periods to detect trends, examining changes that can affect a company's future. This involves a systematic approach to review and interpret financial statements, which is distinct from other methods like error analysis, balance testing, or control evaluation.
Step-by-step explanation:
The substantive analytical procedure known as trend analysis is concisely described as comparing financial information over different periods to identify patterns or trends in the data. This method involves reviewing financial statements and their respective elements to observe changes that may indicate underlying issues or enlighten potential opportunities. Unlike simply checking for errors or testing specific account balances, trend analysis is more forward-looking and forms part of the overall analytical procedures used in auditing and by financial analysts to make informed decisions about a company's performance and future prospects.
For example, in examining how the presence of social media has evolved in television programs over the last five to seven years, a researcher would apply trend analysis by selecting specific shows and identifying patterns in social media integration within those programs, which could reflect broader changes in society and media consumption.