What is the purpose of estimating resources for each audit?

Estimating resources for each audit is crucial to ensure adequate allocation based on risk levels. Auditing is a resource-intensive process, and different audits have varying degrees of complexity and potential risk exposure. By assessing the resources needed, auditors can align their efforts and personnel according to the risks present in the audit scenario. For example, higher-risk audits may require more experienced team members or additional time to ensure thorough investigation and analysis. This targeted allocation improves the effectiveness of the audit process and helps in mitigating potential issues that could arise from under-resourcing.

The other choices address important aspects of audit management but do not capture the primary objective of estimating resources. While minimizing the duration of the audit, reducing costs, and enhancing auditor skills are valuable considerations, they do not focus on the fundamental need to match resource allocation with the specific risk profile of each audit. The emphasis on risk alignment ensures that auditors can adequately prepare for and respond to the challenges they may face, ultimately leading to a more effective audit outcome.