Lesson: Audit Strategy

In this lesson, the concept of audit strategy is explained, highlighting its importance in planning, developing the scope, and timing of an audit. Topics covered include the key elements of an audit strategy checklist, such as deadlines, preliminary evaluation of materiality, use of specialists and service organizations, identifying high-risk areas, and regulatory reporting requirements. The lesson also discusses matters to consider prior to accepting an audit engagement and those to consider after accepting it. Lastly, the concept of an audit plan is introduced as a concrete, written plan developed to address matters in the overall audit strategy. The plan helps auditors efficiently use resources and determine audit objectives.