Skip to content

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

Meridian & Co., Chartered Accountants, have been appointed auditors of Kaveri Textiles Ltd. for the first time. The engagement partner wants to ensure that the audit approach is documented at the right level. Which document sets out the scope, timing and direction of the audit and guides the development of the more detailed audit plan, under SA 300?

The overall audit strategy is the correct document. Under SA 300 it sets the scope, timing and direction of the audit and guides the development of the more detailed audit plan, whereas the audit programme only lists the specific procedures that follow from the plan.

  1. AThe overall audit strategyCorrect
  2. BThe detailed audit programme containing procedures for each assertion
  3. CThe management representation letter
  4. DThe auditor's report draft

Explanation

SA 300 requires the auditor to establish an overall audit strategy that sets the scope, timing and direction of the audit and guides the development of the audit plan. The audit programme is a lower-level document listing the nature, timing and extent of procedures. Hence the programme is not the document that guides the plan; it flows from the plan.

Did you get it right without looking?

One question tells you little. A timed set on Audit Strategy, Audit Planning and Audit Programme shows your real accuracy, how long you take and where you lose marks.

Practise Audit Strategy, Audit Planning and Audit ProgrammeFree diagnostic mock

More Audit Strategy, Audit Planning and Audit Programme questions