Audit Strategy

Audit Strategy


The audit strategy sets the scope, timing and direction of the audit. It allows the auditor to determine the following:
  • the resources to deploy for specific audit areas (e.g. experience level, external experts);
  • the amount of resources to allocate (e.g. number of team members);
  • when the resources are to be deployed; and
  • how the resources are managed, directed and supervised, including the timings of meetings, debriefs and reviews.

Considerations in establishing the overall strategy

Characteristics of the engagement
  • What is the financial reporting framework for the financial statements?
  • Are there industry specific requirements? e.g. listed companies and charities;
  • The number and locations of premises, branches, subsidiaries etc;
  • The nature of the client and the need for specialised knowledge;
  • The reporting currency;
  • The effect of IT on audit procedures, including availability of data.
Reporting objectives, timing of the audit, and nature of communication
  • The timetable for interim and final reporting;
  • The organisation of meetings with management;
  • The expected types and timings of auditor's reports/communications;
  • The expected nature and timing of communication amongst team members; and
  • Whether there are any expected communications with third parties.
Significant factors and preliminary engagement activities
  • Materiality;
  • Results of risk assessment;
  • Professional scepticism;
  • Results of previous audits;
  • Evidence of management's commitment to internal controls;
  • Volume of transactions;
  • Significant business developments/changes;
  • Significant industry developments; and
  • Significant financial reporting changes.
Nature, timing and extent of resources
  • The selection of and assignment of work to the engagement team; and
  • Budgets.
Created at 10/3/2012 4:25 PM  by System Account  (GMT) Greenwich Mean Time : Dublin, Edinburgh, Lisbon, London
Last modified at 11/2/2016 10:52 AM  by System Account  (GMT) Greenwich Mean Time : Dublin, Edinburgh, Lisbon, London

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