In the auditee selection phase of an operational audit, the main criterion for selection is:
A) ease of evaluating the area.
B) potential for improvement in the effectiveness, efficiency, and economy of operations.
C) ease of developing the audit plan.
D) expected cost of the examination.
E) the extent of resources controlled by the area.

Question

Quizplus · Accepted Answer

The main criterion for selecting an auditee in the operational audit phase is the potential for improvement in the effectiveness, efficiency, and economy of operations. This focus ensures that the audit efforts are directed towards areas where they can have the most significant impact on improving the organization's operations.

In the Auditee Selection Phase of an Operational Audit, the Main