CA Final · Advanced Auditing, Assurance and Professional Ethics · Audit Planning, Strategy and Execution

While auditing Kaveri Textiles Ltd, CA Rohan has completed risk assessment procedures and documented the overall audit strategy. His junior asks whether the detailed audit plan for further audit procedures on every area must be fully finalised before any substantive testing on, say, fixed assets begins. Which view is consistent with SA 300?

The auditor may begin further audit procedures for some areas before planning all remaining procedures. SA 300 treats the audit plan as developing throughout the audit, and specific further procedures depend on risk assessment outcomes, so complete finalisation of the plan beforehand is not required.

1. AThe audit plan must be fully completed for all areas before any further audit procedure is started
2. BFurther audit procedures may begin for some classes of transactions, balances and disclosures before all remaining procedures are planned, since planning continues through the auditCorrect
3. CThe audit plan is less detailed than the overall audit strategy, so it can be finalised at the end
4. DPlanning of specific further audit procedures should be done before risk assessment procedures so that risk assessment can be tailored to them