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

Which of the following best describes the relationship between the audit programme and the audit plan for Greenfield Foods Ltd, as understood at CA Intermediate level?

The audit programme is the auditor's set of detailed instructions to the team on the procedures to be performed, derived from the audit plan. It remains flexible and can be modified as the audit proceeds, and it is not management's document, the engagement letter or the opinion.

  1. AThe audit programme is a set of detailed instructions to the audit team on the procedures to be carried out, flowing from the audit plan, and can be modified as the audit proceedsCorrect
  2. BThe audit programme is prepared by the management and approved by the Audit Committee before the auditor is appointed
  3. CThe audit programme is the final working paper that records the opinion and cannot be changed
  4. DThe audit programme is identical to the engagement letter and sets the auditor's remuneration

Explanation

The audit programme lists the detailed procedures, their nature, timing and extent, as instructions to staff and a means of control and recording. It is prepared by the auditor, is flexible and may be modified, and is distinct from the engagement letter or the opinion.

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