Which of the following has the greatest effect on the efficiency of an audit?
Which of the following has the greatest effect on the efficiency of an audit?
The adequacy of preliminary survey information greatly affects the efficiency of an audit. Preliminary surveys help auditors understand the scope, identify potential risk areas, and allocate resources effectively. This allows the audit to be planned and executed efficiently, reducing wasted time and effort.
It is not enough to achieve the engagement objectives (that is effectiveness). An efficient engagement looks at existing risks and controls, as well as the scope. When planning an engagement, it is necessary to look at costs, economies, and address the mix (adequacy) of resources to accomplish the engagement (that is efficiency).
Survey provide information for scope and help focus on weakness, hence increase efficiency
why B?