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Practice Guide to Auditing Efficiency


Significance and Risk

Determining the focus of an audit generally involves assessing significance and risk. Auditors should select areas with high significance in relation to achievement of efficiency and where there is also a risk to the achievement of efficiency. The upper right quadrant in Figure 6 represents the area of high significance and high risk to achievement of efficiency that should be the preferred area of focus for an audit of efficiency.

Figure 6

Selecting High-Significance, High-Risk Issues

Selecting High-Significance, High-Risk Issues