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diffence between audit strategy and audit plan...

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November 27th 2014 AN ACCA USER 190 Points

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Audit strategy
High level summary of what you decide to your objectives are.

E.g to buy a football club worth £50 million.

Audit Plan
Smaller detailed objectives that will fit up into the overall plan.

E.g to secure finance yo purchase the club through using savings of £40 million and getting a successful bank loan of 10 million.

November 28th 2014 AN ACCA USER 1,230 Points
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Audit strategy

  • Sets out general terms how audit is to be carried out
  • Considerations in establishing the strategy include:
    1. characteristics of the engagement
    2. reporting objectives, timing of audit, and nature of communications
    3. significant features, preliminary engagement activities and knowledge gained in other engagement
    4. nature, timing and extent of resources

Audit plan

  • Details specific procedures to implement the strategy and complete the audit
  • Draws these strategy requirements together into a schedule of work that is required to reduce audit risk to the level required to give reasonable assurance
November 28th 2014 AN ACCA USER 1,500 Points