Planning Activities

Question 1

Planning activities

Answer 1

Here’s a simplified version:

Planning Activities

The auditor must establish an overall audit strategy that outlines the scope, timing, and direction of the audit. To do this, the auditor must:

1. Identify the engagement’s scope and characteristics.
2. Determine the reporting objectives and plan the audit timing and communications.
3. Consider significant factors that will guide the engagement team’s efforts.
4. Review preliminary engagement activities and relevant knowledge from previous engagements.
5. Determine the resources needed to perform the engagement.

This overall audit strategy will guide the development of a detailed audit plan.