Auditional Consideration

Question 1

Additional consideration

Answer 1

Here are the simplified smart notes:

Additional Considerations in Initial Audit Engagements

1. Purpose and objective of planning remain the same.
2. Additional matters to consider in establishing overall audit strategy and audit plan:
   
   • Arrangements with predecessor auditor (if applicable).
   • Major issues discussed with management (e.g., accounting principles, auditing standards).
   • Audit procedures for opening balances.
   • Quality control procedures for initial audit engagements.

Audit Documentation Requirements

1. Include in audit documentation:
   
   • Overall audit strategy.
   • Audit plan.
   • Significant changes made to strategy or plan, along with reasons.