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

Sagar Pharma Ltd is a continuing audit client. During planning of the current year audit, the auditor, CA Rohan, wants to use his prior-year knowledge of the entity. Under SA 300, which activity is specifically expected of the engagement partner and other key team members at the planning stage?

Under SA 300 the engagement partner and other key engagement team members must be involved in planning the audit, including taking part in the engagement team discussion. Leaving planning to juniors or briefing the team after fieldwork starts does not meet the Standard.

  1. AEngagement partner alone prepares the audit plan and the team is briefed only after fieldwork begins
  2. BEngagement partner and key team members are involved in planning, including participating in the discussion among the engagement teamCorrect
  3. CPlanning is done only by the audit junior, and the partner reviews it at the completion stage
  4. DPlanning discussion with the team is avoided to maintain independence of the staff

Explanation

SA 300 requires the engagement partner and other key members of the team to be involved in planning, including planning and participating in the discussion among team members. Planning is not left to juniors or delayed. Option A is wrong because briefing after fieldwork defeats the purpose of planning.

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