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.
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.
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...Read More
