1.0 - Planning

Question 1

Define audit strategy

Answer 1

The formulation of the general strategy for the audit, which sets the scope, timing and direction of the audit and guides the development of the audit plan

Question 2

Define audit plan

Answer 2

An audit plan is more detailed than the strategy and sets out the nature, timing and extent of audit procedures (including risk assessment procedures) to be performed by engagement team members in order to obtain sufficient appropriate audit evidence

Question 3

What does an audit plan show?

Answer 3

How the overall audit strategy will be implemented

Question 4

What are the first two things audits are planned to do?

Answer 4

• ensure appropriate attention is devoted to important areas of the audit
• identify potential problems and resolve them on a timely basis

Question 5

What are the next two things audits are planned to do?

Answer 5

• ensure that the audit is properly organised and managed
• assign work to engagement team members properly

Question 6

What are the final two things audits are planned to do?

Answer 6

• facilitate direction and supervision of engagement team members
• facilitate review of work