Page 32 - CA Inter Audit PARAM

CA Ravi Taori
where withdrawal is permitted by law or regulation. The engagement partner shall promptly
report to the firm any inability to resolve the matter for appropriate action.

Authors Note -- Responsibility of Engagement Partner with respect to Independence is covered in SA 300
& SA 220 and both are same. Can give reference of Both and explain this fact.

Factors for establishing Overall Audit Old Course -- (M16R/M17R/M22M/N23R)
QNO
Strategy New Course(J25M)
300.03
Bhaskar CNO SA300.020
“In establishing the overall audit strategy, the auditor shall, among other considerations, ascertain the
nature, timing and extent of resources necessary to perform the engagement”. Explain those
considerations in detail.
OR
Explain the factors an auditor would consider in establishing the overall audit strategy.
OR
Discuss the factors the auditor will consider while establishing the overall strategy
Answer In establishing the overall audit strategy, the auditor shall:
(i) Identify the characteristics of the engagement that define its scope
(ii) Ascertain the reporting objectives of the engagement to plan the timing of the audit and
the nature of the communications required;
(iii) Consider the factors that, in the auditor’s professional judgment, are significant in directing
the engagement team’s efforts;
(iv) Consider the results of preliminary engagement activities and, where applicable, whether
knowledge gained on other engagements performed by the engagement partner for the
entity is relevant; and
(v) Ascertain the nature, timing and extent of resources necessary to perform the
engagement.

QNO Reporting objectives of the engagement Old Course -- (N19E/N21M/M23M/N23R)
300.05 Bhaskar CNO SA300.040 New Course—(S24M/M24M)
Subodh has recently joined an audit firm as an articled clerk. He was in process of assembling audit
working papers in audit file of Cop Limited, as per the instructions of his senior. While assembling, he
noticed following working paper in audit file: -
Timing of Audit Activities
Activiti Expected Timing
Audit Planning July 1, 2023 - July 5, 2023
Review by EQCR July 6, 2023 - July 7, 2023
Audit Field Work July 10, 2023 - August 20, 2023
Review by Manager August 21, 2023
Review by Engagement Partner August 22, 2023 - August 25, 2023
Review by EQCR August 26, 2023 - August 27, 2023
Response on Audit Memo August 28, 2023
Review by Partners – internally post response on August 29, 2023
audit memo
Review by EQCR August 30, 2023
Finalization of Audit Report and Financial September 01, 2023 - September 02,
Statements 2023
Issuance of Audit Report and Financial Statements September 03, 2023
The above working paper lists certain factors which are considered by the auditor while establishing audit
strategy. Explain how these considerations highlighted in above working paper could have helped the
auditor?
OR

In establishing overall audit strategy, the auditor shall ascertain the reporting objectives of the
engagement to plan the timing of the audit and the nature of the communications required. Elucidate
www.auditguru.in 2.2