1.0 - Approach to Planning

Question 1

Step 1

Answer 1

Ensuring that ethical requirements continue to be met

Question 2

Step 2

Answer 2

Ensuring the terms of the engagement are understood

Question 3

Step 3

Answer 3

Establishing the overall audit strategy

Question 4

What are the first 2 ways to establish the overall audit strategy?

Answer 4

• identifying the relevant characteristics of the engagement, such as the reporting framework used as this will set the scope for the engagement
• discovering key dates for reporting and other communications

Question 5

What are the next 2 ways to establish the overall audit strategy?

Answer 5

• determining materiality, preliminary risk assessment, whether internal controls are to be tested
• consideration of when work is to be carried out e.g before or after year end

Question 6

What is the final way to establish the overall audit strategy?

Answer 6

Consideration of ‘team members’ available, their skills - how and when they are to be used. In addition, appropriate levels of staff are required to facilitate direction, supervision and review of more junior team members’ work

Question 7

Step 4

Answer 7

Developing an audit plan including risk assessment procedures, audit tests and any other procedures necessary to comply with ISA Standards

Question 8

What must be documented?

Answer 8

The audit plan and any significant changes to it during the audit