PPT: Audit Strategy, Audit Planning and Audit Programme - 2 | Auditing and Ethics for CA Intermediate PDF Download

 Page 1


AUDITING 
STRATEGIES
(UNIT – III)
1
Page 2


AUDITING 
STRATEGIES
(UNIT – III)
1
AUDITING
? Auditing is the on-site verification activity, such as
inspection or examination, of a process or quality
system, to ensure compliance to requirements.
? Auditing in simple terms could be defined as
inspection of a process or a system to make sure
that it complies with the requirements of its
intended use.
? An audit can apply to entire organization or might
be specific to a function, process or production step.
2
Page 3


AUDITING 
STRATEGIES
(UNIT – III)
1
AUDITING
? Auditing is the on-site verification activity, such as
inspection or examination, of a process or quality
system, to ensure compliance to requirements.
? Auditing in simple terms could be defined as
inspection of a process or a system to make sure
that it complies with the requirements of its
intended use.
? An audit can apply to entire organization or might
be specific to a function, process or production step.
2
AUDITING STRATEGIES
? Audit strategy means the combination of audit
approach to be used , resources management and
allocation , timing of the audit and the way how the
audit engagement is managed.
? For example, the auditor will use risks based audit
approach or top- down approach to conduct audit
assignment.
? Audit strategy normally identifies and set after audit
objective before or at the same time with the audit
plan is performed.
3
Page 4


AUDITING 
STRATEGIES
(UNIT – III)
1
AUDITING
? Auditing is the on-site verification activity, such as
inspection or examination, of a process or quality
system, to ensure compliance to requirements.
? Auditing in simple terms could be defined as
inspection of a process or a system to make sure
that it complies with the requirements of its
intended use.
? An audit can apply to entire organization or might
be specific to a function, process or production step.
2
AUDITING STRATEGIES
? Audit strategy means the combination of audit
approach to be used , resources management and
allocation , timing of the audit and the way how the
audit engagement is managed.
? For example, the auditor will use risks based audit
approach or top- down approach to conduct audit
assignment.
? Audit strategy normally identifies and set after audit
objective before or at the same time with the audit
plan is performed.
3
The audit strategy is based on the following 
considerations
Reporting objectives Timing of the audit Nature of 
communications
Significant factors in 
directing 
engagement team 
efforts
The results of 
preliminary 
engagement 
activities
The knowledge 
gained on other 
engagements
The nature, timing, 
and extent of 
resources available 
for the engagement
4
Page 5


AUDITING 
STRATEGIES
(UNIT – III)
1
AUDITING
? Auditing is the on-site verification activity, such as
inspection or examination, of a process or quality
system, to ensure compliance to requirements.
? Auditing in simple terms could be defined as
inspection of a process or a system to make sure
that it complies with the requirements of its
intended use.
? An audit can apply to entire organization or might
be specific to a function, process or production step.
2
AUDITING STRATEGIES
? Audit strategy means the combination of audit
approach to be used , resources management and
allocation , timing of the audit and the way how the
audit engagement is managed.
? For example, the auditor will use risks based audit
approach or top- down approach to conduct audit
assignment.
? Audit strategy normally identifies and set after audit
objective before or at the same time with the audit
plan is performed.
3
The audit strategy is based on the following 
considerations
Reporting objectives Timing of the audit Nature of 
communications
Significant factors in 
directing 
engagement team 
efforts
The results of 
preliminary 
engagement 
activities
The knowledge 
gained on other 
engagements
The nature, timing, 
and extent of 
resources available 
for the engagement
4
Objective and Purpose of Audit Strategy
To set the scope of the audit engagement
To establish the time frame of the audit
To manage and arrange the audit effectively and correctly
To set the right audit approach
Documentation about Audit methodology
5