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

Mehta & Co. is the continuing auditor of Yamuna Steels Ltd. The engagement partner is considering the role of the engagement partner and key team members in planning. Which of the following is the most appropriate approach under SA 300?

The engagement partner and other key team members should be involved in planning, including planning and taking part in the discussion among team members. SA 300 requires this so that risks and the approach are shared. Planning without the partner or holding discussions after reporting would be inappropriate.

  1. AInvolve the engagement partner and other key members of the engagement team in planning, including planning and participating in the discussion among team membersCorrect
  2. BPrepare the plan solely by the audit manager without any involvement of the partner
  3. CHold a team discussion only after the audit report has been drafted
  4. DExclude the junior staff from all communication about the plan so as to maintain confidentiality

Explanation

SA 300 requires that the engagement partner and other key members of the engagement team be involved in planning the audit, including planning and participating in the discussion among team members. Planning solely by a manager or holding discussions after the report defeats the purpose, and juniors need to understand the plan to perform procedures effectively.

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