Major advantage of risk based approach for audit planning is: - ProProfs Discuss
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Major advantage of risk based approach for audit planning is:



A. A. Audit planning can be communicated to client in advance.
B. B. Audit activity can be completed within allotted budget.
C. C. Use of latest technology for audit activities.┬а
D. D. Appropriate utilisation of resources for high risk areas.

This question is part of CISA - Mock Test - Domain 1 (100 Questions)
Asked by Hemangdoshi, Last updated: Jun 04, 2018

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hemangdoshi

Hemangdoshi

Answered on Apr 19, 2018

D. Appropriate utilisation of resources for high risk areas.

The risk-based approach is designed to ensure audit time is spent on the areas of highest risk. The development of an audit schedule is not addressed by a risk-based approach. Audit schedules may be prepared months in advance using various scheduling methods. A risk approach does not have a direct correlation to the audit staff meeting time budgets on a particular audit, nor does it necessarily mean a wider variety of audits will be performed in a given year.
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