Page 48 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori
(CNO-APSE.200) Benefits of Overall Audit Strategy / Matters related to Resources.
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Shortcut : AT M resources
The process of establishing the overall audit strategy assists the auditor to determine such matters as-
Amount of Resources (Quantity): Deciding the amount of resources to allocate to specific audit areas, such as
the number of team members for inventory count observation at material locations, the extent of review of
other auditors’ work in group audits, and the allocation of audit hours to high-risk areas.
Type of Resources (Quality): Determining the type of resources needed for specific audit areas, including
experienced team members for high-risk areas and experts for complex matters such as valuation and hedging
transactions.
Timing of Deployment of Resources: Deciding when to deploy resources, such as at an interim audit stage
or close to key cut-off dates.
Management of Resources: Determining how resources will be managed, directed, and supervised, including
when team briefing and debriefing meetings are to be held, how partner and manager reviews will take place,
and whether to complete engagement quality control reviews.

(CNO-APSE.220) Considerations in Establishing the Overall Audit Strategy
Auditors consider various factors when forming an audit strategy, many of which also affect the detailed audit
plan. However, not all factors apply to every audit, and the list isn't exhaustive.
Characteristics of the Engagement affecting Scope.
Shortcut: Scope like PACIFIC Ocean
Service Organisation: Does the entity use service organizations, and if so, how can the auditor obtain evidence
regarding the design or operation of controls performed by these organizations.
Previous audits: Will the auditor be able to use audit evidence obtained in previous audits, specifically related
to risk assessment procedures and tests of controls.
Availability: Will client personnel and data be readily available for the audit
Coverage: What is the expected audit coverage, including the number and locations of components that will
be included in the audit
Industry-specific Reporting requirements: Are there any industry-specific reporting requirements that the
entity must comply with, as mandated by industry regulators.
FRF: What is the financial reporting framework being used by the entity.
Information technology: How does information technology affect the audit procedures.
Control relationships: What are the control relationships between the parent company and its components,
and how do these relationships determine the consolidation of the group.
Other Auditor: To what extent are components audited by other auditors.
Reporting Objectives, Timing of the Audit, and Nature of Communications
1. Timetable: The specific timetable for the entity to submit their reports.

2A. Discussion on Audit work: How meetings with management are organized for discussing the audit work,
including the nature, timing, and extent of these meetings.
2B. Discussion on Status: The discussion with management regarding the communication of the status of the
audit work.
2C. Discussion on Reports: The Discussion with management as well as Auditor of component regarding the
type and timing of reports that will be issued as a result of the audit.

3A. Communication with Team: The nature and timing of communication among members of the
engagement team.
3B. Communication with other auditors: How communication with auditors of different components is
conducted, including discussions on the types and timing of reports to be issued.
3C. Communication with Third Parties: Any other expected communications with third parties, including

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