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CA Intermediate · Auditing and Ethics

Audit Strategy, Audit Planning and Audit Programme: CA Intermediate Auditing and Ethics

This chapter covers how an auditor plans an audit before and during fieldwork. You set an overall audit strategy, build a detailed audit plan, write an audit programme, choose procedures to get evidence, and supervise the team. Solve questions by naming the concept, applying it to the facts, and concluding.

What this chapter covers

This chapter is about thinking before doing. Under SA 300, the auditor plans the audit so that it is carried out in an effective manner. Planning is not a one-time step. It starts at the beginning of the engagement and continues, and the plan is updated as new facts come up.

The chapter moves from the big picture to the detail. The overall audit strategy sets scope, timing and direction. The audit plan turns it into the nature, timing and extent of procedures. The audit programme lists the actual steps for each area. Audit techniques, such as inspection, observation, inquiry, confirmation, recalculation, reperformance and analytical procedures, are the tools used to get evidence. Quality control and supervision make sure the work is done to standard.

This chapter links to almost everything else in the paper. Risk assessment, internal control, audit evidence, documentation, sampling and the audit report all depend on a sound plan. Ethics and quality ideas from the Code of Ethics and SQM standards also appear here. If you understand this chapter well, later chapters feel like details of the same process.

This chapter gives you easy MCQ marks because the questions test clear terms and distinctions, such as strategy versus plan, plan versus programme, and the names of audit procedures. It also gives you written-answer marks, since theory questions ask you to explain the contents, advantages and limitations of planning and programmes. The ideas repeat in later chapters, so time spent here pays back across the whole paper. Most of the content is concept-based, so you can score well without heavy calculation.

Audit Strategy, Audit Planning and Audit Programme: topics in the order to study them

  1. 1Audit Strategy and Overall Audit PlanStart here because it gives the big picture and the key terms that every later topic builds on.
  2. 2Planning Activities and Preliminary Engagement WorkNext, learn what the auditor does before the main work starts, such as acceptance decisions, engagement terms and understanding the entity.
  3. 3Audit ProgrammeOnce you know the plan, you can see how it is broken into detailed steps, and how a programme differs from a plan.
  4. 4Audit Techniques and Procedures for EvidenceProgramme steps are carried out using these techniques, so learn them after you know what a programme contains.
  5. 5Control of Quality and Supervision in Audit PlanningFinish with how work is directed, supervised and reviewed, which ties planning to the quality of the final audit.

How to prepare Audit Strategy, Audit Planning and Audit Programme

This is a concept chapter, so aim to understand the flow first and then memorise the lists and distinctions. Use this plan.

  1. Read the chapter once for the flow: strategy, then plan, then programme, then procedures, then supervision. Do not memorise yet.
  2. Make a one-page comparison of overall audit strategy, audit plan and audit programme. Note who prepares each, what it covers and how detailed it is.
  3. List the preliminary activities and the points covered in the strategy and plan. Learn each list with a short memory hook of your own.
  4. Learn the audit procedures with one practical example each. For instance, inspection of an invoice, observation of stock count, external confirmation from a bank.
  5. Practise MCQs by identifying the keyword in the stem. Eliminate options that mix up terms, such as calling a programme the overall strategy.
  6. For written answers, use a fixed format: state the concept, apply it to the facts given, then conclude. Write in short points with clear headings.
  7. Revise the lists and comparison page in two short rounds before the exam.

Common mistakes in Audit Strategy, Audit Planning and Audit Programme

  • Treating the audit strategy, audit plan and audit programme as the same thing.

    Fix: Remember the order of detail: strategy is the broad direction, plan is the detailed approach, programme is the step-by-step instruction for the team.

  • Thinking planning is done only once at the start.

    Fix: State that planning is continuous and the strategy and plan are revised as new information arises.

  • Mixing up audit procedures, for example calling observation a confirmation.

    Fix: Attach one real example to each procedure and use the action word in the question stem to decide.

  • Writing long theory answers without applying them to the facts in the question.

    Fix: Use a provision-facts-conclusion style. Quote the rule briefly, link it to the given facts and end with a clear conclusion.

  • Skipping the supervision and quality topic because it seems small.

    Fix: Study it properly. It is easy to score and connects to the roles of the engagement partner and team.

Last-day revision: Audit Strategy, Audit Planning and Audit Programme

  • Planning is a continuing process that begins at the start of the engagement and is updated as needed.
  • The overall audit strategy sets scope, timing and direction of the audit.
  • The audit plan is more detailed than the strategy and sets the nature, timing and extent of procedures.
  • The audit programme is the set of detailed audit steps for each area, giving instructions to the team.
  • Strategy and plan are closely linked, and changes in one may need changes in the other.
  • Preliminary activities include deciding on acceptance or continuance and agreeing the terms of engagement.
  • Audit procedures include inspection, observation, inquiry, confirmation, recalculation, reperformance and analytical procedures.
  • Inquiry alone is not enough to get sufficient appropriate audit evidence.
  • The engagement partner is responsible for direction, supervision and review of the work.
  • Document the strategy, the plan and any significant changes made during the audit.
  • A programme should be updated when the auditor's risk assessment changes.
  • MCQs have no negative marking, so attempt every one.

Audit Strategy, Audit Planning and Audit Programme practice questions

Audit Strategy, Audit Planning and Audit Programme in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Audit Strategy, Audit Planning and Audit Programme: frequently asked questions

Is Audit Strategy, Audit Planning and Audit Programme a theory chapter?

Yes. There are no calculations. You need to know terms, lists and distinctions, and apply them to short case facts.

Which standard should I focus on for this chapter?

SA 300 on planning an audit is the core standard. Also keep the basic ideas of SA 230 on documentation and SA 500 on audit evidence in mind, as they connect to this chapter.

How are MCQs asked from this chapter?

They usually test definitions, differences between strategy, plan and programme, and which audit procedure fits a given situation. Read the stem for keywords and eliminate options that mix up terms.

How should I write a theory answer from this chapter?

Start with a one-line definition, then give points in short bullets, and add a brief example or application. Where facts are given, link each point to them and end with a conclusion.