In order to promote audit efficiency the auditor considers cost in selecting audit tests to perform.Which of the following audit tests would be the most costly?
A)Analytical procedures
B)Risk assessment procedures
C)Tests of controls
D)Tests of details of balances

Question

Quizplus · Accepted Answer

Tests of details of balances are the most costly audit tests as they involve detailed examination of individual transactions and account balances. These tests require a significant amount of time and effort on the part of the auditor, and may involve sampling large volumes of data. Analytical procedures generally involve the use of computer software and statistical analysis techniques, which can be performed more efficiently than manual testing. Risk assessment procedures and tests of controls may also involve some level of sampling and testing, but they are generally less expensive than tests of details of balances.

In Order to Promote Audit Efficiency the Auditor Considers Cost