September 08, 2022 September 08, 2022/
An audit strategy sets the direction, timing, and scope of an audit. The strategy is then used as a guideline when developing an audit plan. By developing an audit strategy, it is easier to create a more targeted audit plan, thereby wasting less time in total during the planning phase of an audit. The strategy document usually includes a statement of the key decisions needed to properly plan the audit. The audit strategy is based on the following considerations:
The audit strategy could be relatively short for the audit of a smaller entity, perhaps in the form of a brief memo. If there are unexpected changes in conditions or the outcome of audit procedures, it may be necessary to alter the audit strategy. If there is an alteration, the reasons for the alteration should be stated in the accompanying documentation.
The Difference Between an Audit Strategy and Audit Plan
An audit plan states the detailed steps to be followed in the conduct of an audit. The plan includes risk assessment procedures, as well as additional procedures to be followed based on the outcome of the risk assessment. The audit plan is much more detailed than the strategy document, since the plan states the nature, timing, and extent of the specific audit procedures to be conducted.
September 08, 2022/
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