Final answer:
The statement that it is generally more efficient to follow a substantive strategy for auditing investments is not universally true. The efficiency of an audit strategy depends on various factors like the internal control environment, the investments' complexity, and the risk of material misstatement.
Step-by-step explanation:
The efficiency of an audit strategy, particularly when reviewing investments, depends on the specific circumstances of the audit scenario. While a substantive audit strategy focuses on obtaining direct evidence to detect material misstatements at the assertion level, in some cases, relying solely on substantive procedures may not be the most efficient way to audit investments. Factors such as the internal control environment, the size, and complexity of the investments, and the risk of material misstatement are all critical when determining the appropriate audit approach. In some situations, testing the operating effectiveness of controls may complement substantive procedures and lead to a more efficient audit strategy. Therefore, the statement that it is generally more efficient to follow a substantive strategy for auditing investments may not be universally true, as the efficiency of the audit procedure is contingent upon specific audit circumstances.