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 test as they involve a high level of scrutiny and examination of individual transactions and account balances. This requires more time and effort from the auditor, as well as potentially higher fees for the client. Analytical Procedures and Risk Assessment Procedures are generally less costly as they involve more high-level analysis and review of financial statements and business operations. Tests of Controls can also be costly, but typically not as much as Tests of Details of Balances.

In Order to Promote Audit Efficiency the Auditor Considers Cost