Skip to content

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

While planning the audit of Narmada Foods Ltd., the auditor wants to discuss the overall audit strategy and certain planned procedures with the company's audit committee to improve coordination with management's own work. Under SA 300, what is the auditor's responsibility in such a case?

The auditor may discuss elements of planning with the audit committee or management, but remains solely responsible for the overall audit strategy and audit plan. The discussion must not compromise audit effectiveness, for example by making detailed procedures predictable. No approval from the committee is required.

  1. AThe auditor may discuss elements of planning but must retain responsibility for the audit strategy and plan, and avoid compromising audit effectivenessCorrect
  2. BThe auditor must obtain the audit committee's approval of the audit plan before starting work
  3. CThe auditor must hand over the detailed audit programme to management so that it can be adjusted
  4. DThe auditor should not discuss planning matters with those charged with governance at all

Explanation

SA 300 permits discussion of planning matters with those charged with governance and management, but the auditor remains responsible for the strategy and plan. Detailed procedures should not be disclosed so as to make them too predictable. Hence approval by the committee or sharing the programme is wrong.

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