Page 47 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori
and extent of planned risk assessment procedures. These procedures aim to identify and assess the risks of
material misstatement through understanding the entity and its environment.
2B. Plan for Further Audit Procedures: As per SA 330, the audit plan should also detail the nature, timing,
and extent of planned further audit procedures at the assertion level. These procedures are determined based
on the assessed risks.
2C. Plan for other audit Procedures: The audit plan should include any other planned audit procedures
necessary to ensure that the engagement complies with the Standards on Auditing (SAs).
3. First RAP & then FAP: The planning of risk assessment procedures occurs early in the audit process.
However, the nature, timing, and extent of specific further audit procedures depend on the outcome of the risk
assessment procedures.
4. FAP may or may not be simultaneously: The auditor may begin executing further audit procedures for
some classes of transactions, account balances, and disclosures before planning all remaining further audit
procedures.

(CNO-APSE.160) Changes to Planning Decisions
1. Change:
1. Update and change: The auditor should update and change the overall audit strategy and plan during the
audit. The nature, timing, and extent of further audit procedures may need to be modified based on reassessed
risks.
2. Reasons:
2. Broad Reasons: The auditor needs to modify the overall audit strategy and plan due to below mention
factors:
• Changes in conditions
• Result of unexpected events,
• The Audit evidence obtained from the result of audit procedures.
3. Examples:
3A. Legal Changes: Changes in laws, notifications, or government policies may require updates to the overall
audit strategy.
3B. Information Discrepancy: Modifications may be required if information obtained during the audit differs
significantly from the planned procedures.
3C. Evidence Contradiction: Audit evidence from substantive procedures may contradict evidence from tests
of controls.

(CNO-APSE.180) Overall Audit Strategy
The auditor shall establish an overall audit strategy that sets the scope, timing and direction of the audit, and
that guides the development of the audit plan.
Factors while establishing Overall Audit Strategy
2
Shortcut: ROSE
Resources: Determine the necessary resources for the engagement, considering their nature, timing, and
extent.
Reporting Objectives: Establish the reporting objectives to determine the audit's timing and the nature of
required communication.
Scope: Determine the audit's defining characteristics to identify the engagement's scope.
Efforts: Consider the factors that, in the auditor’s professional judgment, are significant in directing the
engagement team’s efforts.
Evaluation: Evaluate preliminary engagement activities and determine the relevance of knowledge from
previous engagements.

www.auditguru.in 3.3