CA Inter P5 · Chapter 2 · Question 1 of 11
According to SA 300, the overall audit strategy:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Sets the scope, timing and direction of the audit and guides the development of the audit plan
Explanation
SA 300 requires the auditor to establish an overall audit strategy that sets the scope, timing and direction of the audit, and that guides the development of the more detailed audit plan. The written agreement of terms is the engagement letter under SA 210, and a detailed list of procedures is the audit plan or programme.
More Audit Strategy, Audit Planning and Audit Programme MCQs
- Q3Midway through the audit of Neelgiri Tea Ltd., the audit team learns that a major subsidiary has been sold. The engagement partner says…
- Q4SA 300 requires which of the following persons to be involved in planning the audit?
- Q5Which of the following is NOT a preliminary engagement activity required at the beginning of the current audit engagement under SA 300?
- Q6Rajat & Co. has been appointed auditor of Jivika Ltd. for the first time. Which additional planning consideration applies specifically…
- Q7An audit programme is best described as: