| 7. | The auditor shall establish an overall audit strategy that sets the scope, timing and direction of the audit, and that guides the development of the audit plan. |
| 8. | In establishing the overall audit strategy, the auditor shall: |
| (a) | Identify the characteristics of the engagement that define its scope; |
| (b) | Ascertain the reporting objectives of the engagement to plan the timing of the audit and the nature of the communications required; |
| (c) | Consider the factors that, in the auditor's professional judgment, are significant in directing the engagement team's efforts; |
| (d) | Consider the results of preliminary engagement activities and, where applicable, whether knowledge gained on other engagements performed by the engagement partner for the entity is relevant; and |
| (e) | Ascertain the nature, timing and extent of resources necessary to perform the engagement. (Ref: Para. A8-A11) |
| 9. | The auditor shall develop an audit plan that shall include a description of: |
| (a) | The nature, timing and extent of planned risk assessment procedures, as determined under ISA (UK and Ireland) 315.4 |
| (b) | The nature, timing and extent of planned further audit procedures at the assertion level, as determined under ISA (UK and Ireland) 330.5 |
| (c) | Other planned audit procedures that are required to be carried out so that the engagement complies with ISAs (UK and Ireland). (Ref: Para. A12) |
| 10. | The auditor shall update and change the overall audit strategy and the audit plan as necessary during the course of the audit. (Ref: Para. A13) |
| 11. | The auditor shall plan the nature, timing and extent of direction and supervision of engagement team members and the review of their work. (Ref: Para. A14-A15) |
| 4 ISA (UK and Ireland) 315, "Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment." |
| 5 ISA (UK and Ireland) 330, "The Auditor's Responses to Assessed Risks." |
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