Audit Strategy, Planning & Programme

Correct answer C: Identifying and addressing potential problems in good time.

Planning helps anticipate and deal with problems on time, including access to needed expertise. It does not guarantee an opinion or excuse missing relevant work.

Correct answer C: Selecting and assigning team members with capability suited to anticipated risks.

Adequate planning helps select competent members and assign work to respond to anticipated risks. Suitable assignment and supervision remain necessary.

Correct answer D: These are matters to consider in planning before that risk identification/assessment stage is complete.

Planning includes materiality, expert involvement, legal framework and risk assessment procedures. Considering expertise is not the same as mandating an expert in every case.

Correct answer A: Planning elements may be discussed with management provided effectiveness is not compromised.

Logistical discussions can facilitate the audit. The requirement is to protect effectiveness, not to prohibit all management discussion or surrender procedure decisions.

Correct answer D: Obtain necessary information on client integrity, competence and engagement acceptance.

Acceptance/continuance procedures consider relevant integrity, competence and engagement issues. The facts call for assessment, not an assumed negative conclusion or automatic acceptance.

Correct answer D: Take appropriate action, considering withdrawal where permitted and reporting an inability to resolve it to the firm.

The partner assesses independence and takes appropriate action on threats. Withdrawal is conditional on applicable law; unresolved matters should promptly go to the firm.

Correct answer C: To avoid misunderstandings and identify circumstances affecting planning and performance.

Understanding terms is a preliminary activity that supports the ability to plan and perform. It does not predetermine the opinion or prove account balances.

Correct answer A: An overall audit strategy guiding the detailed plan.

Detailed steps do not replace the strategy's broad scope/timing/direction decisions. The strategy guides development of the audit plan.

Correct answer D: Allocate amounts of resources to particular areas in light of their audit needs.

Strategy addresses numbers of staff and hours for areas, including material count locations and high-risk work. Equality is not a universal audit planning principle.

Correct answer B: The timing of resource deployment must fit the work and evidence needs.

Strategy includes when resources are deployed. Expert involvement must be planned usefully; signing-day availability alone does not establish that needed work can be performed.

Correct answer D: How the resources will be directed, supervised and reviewed.

Strategy helps determine management of resources, including team meetings and partner/manager review. Staffing alone does not eliminate those needs.

Correct answer A: Engagement characteristics that define scope, including framework and specialised knowledge.

The strategy reflects framework and segment characteristics as well as reporting requirements and knowledge needs. Changes require assessment, not an automatic report conclusion.

Correct answer D: Reporting objectives and the expected nature/timing of communications.

Reporting objectives inform timing, management discussions, status communications and team reviews. They are not limited to a final report date.

Correct answer B: Consider previous findings and the action taken while assessing present relevance.

Previous control results and remediation are relevant planning inputs. A claim is not proof, and a prior weakness does not automatically establish current fraud.

Correct answer C: In the risk assessment procedures part of the audit plan.

The stated purpose makes these planned risk assessment activities. Recording their planned detail does not turn them into proof of all account assertions.

Correct answer B: Nature, timing and extent of further audit procedures at assertion level.

The plan needs a detailed assertion-level response. Bare headings and deadlines do not describe what work, when or how much is planned.

Correct answer C: Include the other required planned procedure so the engagement complies with SAs.

The audit plan includes other procedures needed for SA compliance as well as risk assessment and assertion-level work. A risk list does not waive applicable requirements.

Correct answer C: Suitable further work on income may begin while remaining planning develops.

Some further procedures can be performed before all remaining procedures are planned. This flexibility does not excuse neglect of other areas or later updates.

Correct answer D: They are closely related; a change in one may require changes in the other.

Strategy is the broad approach and the plan implements it in detail. They are not necessarily discrete sequential processes, nor does every change invalidate all prior work.

Correct answer A: The overall strategy and audit plan remain the auditor's responsibility.

Management knowledge can aid coordination and understanding, but the auditor establishes strategy and develops the plan. Adopting management decisions uncritically transfers a responsibility that remains with the auditor.

Correct answer A: Update strategy and plan as needed and revise the planned response to assessed risks.

Later evidence and changed conditions may require revisions to both approach and procedures. The effect on evidence and opinion still needs assessment.

Correct answer B: Entity/area complexity, assessed risks and the competence of the people doing the work.

Direction, supervision and review vary with size/complexity, area, risks and staff capability. Uniform review is not automatically suitable.

Correct answer A: Documentation of significant changes and why they were made.

Planning documentation covers the overall strategy, plan and significant changes with reasons. The rationale helps explain the final adopted response.

Correct answer B: To implement audit procedures that obtain sufficient evidence for an informed opinion.

The programme is detailed verification guidance for obtaining evidence. A programme or sign-off does not itself replace evidence or transfer management's preparation responsibility.

Correct answer A: Tailor it to the actual business, controls and scope rather than use it unchanged.

Nature, size, composition and controls differ. A standard template can help but must be adapted to pertinent work and special circumstances.

Correct answer C: Review programme adequacy periodically in light of operations and controls.

Periodic review keeps the programme useful, removing inadequacies and redundancies. This is a controlled revision process, not a licence for unilateral convenience deletions.

Correct answer B: Consider controls and whether reliance or another approach obtains suitable evidence effectively and efficiently.

Programme construction reflects control assessment and results. Reliance may be useful, while other routes may be more efficient subject to applicable requirements; neither blanket extreme follows.

Correct answer C: Coordinate procedures for related items while addressing relevant objectives.

Related items and evidence should be coordinated. Objectives, relevant procedures and error possibilities matter, rather than isolated checking or arbitrary quantities.

Correct answer B: Availability is not limited to client-held records; consider obtainable relevant evidence and its weight.

Programme design identifies reasonably available evidence from various sources and weighs it for the assertion. External sources are not automatically sufficient, but the client folder is not the boundary.

Correct answer D: A properly drawn programme can have evidential value but is not automatic immunity.

A sound programme may help show reasonable care, but mechanical, obsolete or unsupported sign-offs do not conclusively establish audit performance. The actual work still matters.