Page 36 - CA Inter Audit PARAM

CA Ravi Taori

Example
Planning of the auditor’s risk assessment procedures occurs early in the audit process. However, planning
the nature, timing and extent of specific further audit procedures depends on the outcome of those risk
assessment procedures. In addition, the auditor may begin the execution of further audit procedures for
some classes of transactions, account balances and disclosures before planning all remaining further
audit procedures.

QNO-- Activities Prior to Identification & Assessment of RMM New Course – (M24M/M24E)
300.25 Bhaskar CNO – Unique

Planning includes consideration of the timing of certain activities and audit procedures that need to be
completed prior to the performance of further audit procedures. For example, planning includes the need to

consider, prior to the auditor’s identification and assessment of the risks of material misstatement, certain
matters. Discuss those matters.
Answer Prior to auditor’s identification and assessment of risks of material misstatement, planning includes the need
to consider following matters:
1. The analytical procedures to be applied as risk assessment procedures.
2. Obtaining a general understanding of the legal and regulatory framework applicable to the entity and
how the entity is complying with that framework.
3. The determination of materiality.
4. The involvement of experts.
5. The performance of other risk assessment procedures.

QNO Audit Plan (Documentation & Examples) Old Course - (N20R N18M/SM20/SM21/M21E/N22R)
300.27 Bhaskar CNO SA300.180 New Course- (SM25/S24M)
The auditor shall document the overall audit strategy, the audit plan, and any significant changes made
during the audit engagement to the overall audit strategy or the audit plan, and the reasons for such
changes. Explain.
OR
An auditor of a company fails to document audit strategy and audit plan. Briefly outline consequences of
such failure.
OR
CA D is planning an audit of a listed company. List specific documentation requirements in accordance
with SA 300 in relation to planning such an audit. How such planning documentation is useful?
Answer ➢ The auditor shall document:
the overall audit strategy;
the audit plan; and
any significant changes made during the audit engagement to the overall audit strategy or
the audit plan, and the reasons for such changes.

➢ Further Explanation
Overall Audit Strategy
The documentation of the overall audit strategy is a record of the key decisions
considered necessary to properly plan the audit and to communicate significant matters
to the engagement team.
Example: The auditor may summarize the overall audit strategy in the form of a
memorandum that contains key decisions regarding the overall scope, timing and conduct
of the audit.

Audit Plan
The documentation of the audit plan is a record of the planned nature, timing and extent
of risk assessment procedures and further audit procedures at the assert on level in
response to the assessed risks. It also serves as a record of the proper planning of the
audit procedures that can be reviewed and approved prior to their performance. The
auditor may use standard audit programs and/or audit completion checklists, tailored as
needed to reflect the particular engagement circumstances.
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