Page 58 - CA Inter Bhaskar Vol 1

AUDIT STRATEGY, AUDIT PLANNING AND AUDIT PROGRAMME CA RAVI TAORI

about inventory obsolescence. After obtaining an understanding of the entity's process that
raised concerns about inventory obsolescence (which we had identified as a significant class
of transactions), we concluded that additional tests of details were required. Therefore, the
senior will likely take part, along with the team, in the discussions with management about
the provision for obsolescence and examine relat documentation supporting the provision,
rather than just reading the memo on file. These procedures should be completed as the work is AUDIT BHASKAR CH-02 PART 01
being performed rather than as an after the fact review. The extent of the senior's involvement
requires judgment, taking into consideration the complexity of the area and the experience of
the team.

(CNO--SA300.140) CHANGES TO PLANNING DECISIONS DURING THE COURSE OF THE AUDIT
(QNO-300.17) (MCQ-300.11)

Chart Shall update & change OAS & AP as necessary
Factors may lead to modify OAS & AP

Changes in Result of Result of Audit
Condition unexpected events Procedures
Further if there is revision in assessed risk modify NTE of FAP

Changes in Condition / Contradictory Audit Evidence / Results leading to Additional Audit Procedures
The auditor shall update and change the overall audit strategy and the audit plan as necessary during the
course of the audit. As a result of unexpected events, changes in conditions, or the audit evidence
obtained from the results of audit procedures, the auditor may need to modify the overall audit strategy
and audit plan and thereby the resulting planned nature, timing and extent of further audit procedures,
based on the revised consideration of assessed risks. This may be the case when information comes to
the auditor's attention that differs significantly from the information available when the auditor
planned the audit procedures.
For example, audit evidence obtained through the performance of substantive procedures may contradict
the audit evidence obtained through tests of controls.

(CNO--SA300.160) ADDITIONAL CONSIDERATIONS IN INITIAL AUDIT ENGAGEMENTS
Chart
Additional Activities Prior to starting initial audit

Acceptance procedures Communication with
as per SA220 predecessor auditor

(As per SA-300, (As per SA-300, “Planning an Audit of Financial Statements”) The auditor shall undertake the following
Planning an activities prior to starting an initial audit:
Audit of
Financial Performing procedures required by SA 220 regarding the acceptance of the client relationship
Statements) and specific audit engagement, and
Communicating with the predecessor auditor, where there has been a change of auditors, in
compliance with relevant ethical requirements.

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