An audit efficiency occurs when:
A) the auditor concludes there is no material misstatement when in fact there is.
B) the auditor concludes there is a material misstatement when in fact there is not.
C) the auditor concludes that the transactions need to be reperformed.
D) None of the above are audit efficiency problems.

Question

Quizplus · Accepted Answer

When the auditor concludes there is a material misstatement when in fact there is not, this results in unnecessary additional testing and work, which decreases audit efficiency. Option A is a material misstatement error, and Option C means that there are transaction errors that need to be re-examined, which may or may not reduce audit effectiveness. Option D is incorrect because all of the options in the question are related to possible audit efficiency difficulties.

An Audit Efficiency Occurs When