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

During planning of the audit of Sundaram Foods Pvt. Ltd., the audit manager prepares the audit programme but the engagement partner suggests that it need not be changed even if significant unexpected events occur, since it was approved at the start. Which statement reflects the correct position under SA 300?

The auditor should update and change the overall audit strategy and audit plan as necessary during the audit and document the significant changes with reasons. SA 300 treats planning as continual and iterative, so a programme is not frozen once approved and no audit committee consent is needed.

  1. AThe auditor should update and change the overall audit strategy and audit plan as necessary during the course of the audit, and document the changes and reasonsCorrect
  2. BThe audit programme is fixed once approved and cannot be altered until the audit report is signed
  3. CChanges are allowed only with the written consent of the company's audit committee
  4. DChanges are permitted only in the audit plan, never in the overall audit strategy

Explanation

SA 300 states that planning is a continual and iterative process. The auditor must update and change the overall audit strategy and audit plan as necessary, and document significant changes and the reasons. Approval by the audit committee is not required, and both the strategy and the plan can be revised. A fixed programme would contradict the iterative nature of planning.

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