To maximize audit efficiency, the auditor should allocate less tolerable misstatement to accounts that can be verified by using low-cost audit procedures, such as analytical procedures, than to accounts that are more costly to audit.

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Quizplus · Accepted Answer

This statement is true because allocating less tolerable misstatement to accounts that can be verified using low-cost procedures will result in greater audit efficiency. This is because the auditor can use less resources to verify lower risk accounts, leaving more resources to be allocated to higher risk accounts that require more costly audit procedures.

To Maximize Audit Efficiency, the Auditor Should Allocate Less Tolerable