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| Topic: |
Business
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| Number of pages / Number of words: |
6 / 1502 |
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The knowledge gathered can help to design the audit program that includes '...the most effective and efficient combination of tests responsive to each client's unique circumstances.' Grobstein and others (1985 p29). For this reason, the risk-based approach is then superior to traditional auditing methods...
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For example, the aims of this risk-based approach are to assess and identify the high-risk areas, while at the same time, the auditor is minimizing the risk of negligence. Therefore, this can speed the audit up and help to allocate specialists to specific areas of the audit. However, this process can cause more time to be spent on the audit and raise costs, not making economic sense...
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