What might auditors require to test high-risk areas effectively?

To effectively test high-risk areas, auditors often need additional documents or an increased sample size. High-risk areas are typically associated with a greater potential for material misstatements or fraud, thus necessitating a more thorough examination of relevant data. By increasing the sample size, auditors can gather more comprehensive evidence and draw more reliable conclusions about the presence of risks or anomalies in the data.

Additionally, requesting additional documents allows auditors to verify and analyze transactions more deeply. This is particularly important in areas where complexities may exist, as understanding the nuances can significantly affect audit outcomes. Higher scrutiny and broader data sets enable auditors to effectively assess the risks at hand and ensure they meet professional standards when forming their audit opinions.

In this context, focusing solely on documented policies and procedures would not provide the necessary depth of analysis required for high-risk assessments. While budget considerations and time allocations are important in planning an audit, they do not directly contribute to the effectiveness of testing in high-risk areas, which requires a more detailed and expansive approach.