Audit Selection Criteria

Audit selection criteria are the standards or methods used to determine which financial reports or organizations should be audited. These criteria consider factors like the size of the company, the industry it operates in, past audit results, financial risk levels, or specific areas of concern. The goal is to identify entities that warrant review to ensure accuracy, compliance, and prevent fraud. Proper selection helps auditors focus their resources effectively on the most significant or risky cases, maintaining the integrity of financial reporting and safeguarding stakeholders' interests.