What is audit strategy?

The audit strategy sets out in general terms how the audit is to be conducted and sets the scope, timing and direction of the audit. The audit strategy then guides the development of the audit plan, which contains the detailed responses to the auditor's risk assessment.

What is the objective of audit strategy?

A strategy audit is a systematic review of your organization's goals, plans, and actions to evaluate their alignment, effectiveness, and relevance. It can help you identify strengths, weaknesses, opportunities, and threats, as well as gaps, inconsistencies, and misalignments.

Who determines audit strategy?

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.

What is audit strategic planning?

A company's strategic plan is its long-term outlook that sets out the plans, goals, objectives and actions for the next three to ten years. The board needs an objective assurance that the plan was properly developed. The internal audit function is best positioned to provide this assurance.

What is the difference between audit strategy and audit Programme?

Audit plan refers to the strategies or guidelines which are followed by the auditor for conducting audit. Audit programme is the list of steps, that are to be followed by audit staff to obtain sufficient audit evidence.

Audit Strategy and Audit Plan

What are the four audit strategies?

Essentially there are four different audit approaches: the substantive procedures approach the balance sheet approach the systems-based approach the risk-based approach. This is also referred to as the vouching approach or the direct verification approach.

How do you create an audit strategy?

What does a strategic audit look like?

A strategic audit focuses on understanding and evaluating products and services, development areas, customers and markets, competitors, internal teams and skills, organization, processes, methods and technologies.

What is the audit plan and overall audit strategy?

The audit plan is more detailed than the overall audit strategy in that it includes the nature, timing and extent of audit procedures to be performed by engagement team members. Planning for these audit procedures takes place over the course of the audit as the audit plan for the engagement develops.

What is an internal audit strategy?

The internal audit strategy is fundamental to remaining relevant — playing an important role in achieving a balance between cost and value, while making meaningful contributions to the organization's overall governance, risk management, and internal controls.

What is audit planning in simple words?

Audit planning involves the development of an overall strategy or game plan for the expected conduct and scope of the audit—matters such as the integrity of management, errors and irregularities, and illegal acts. The auditor should plan the audit with professional skepticism about such.

What are the 5 stages of an audit?

What is the first step in the audit process?

Step 1: Planning

The auditor will review prior audits in your area and professional literature. The auditor will also research applicable policies and statutes and prepare a basic audit program to follow.

What are the main areas included in audit strategy?

The contents of the audit strategy document include multiple components, for example, the audit scope, overview, deliverables, and the significant risks that auditors must deal with to perform an audit effectively. A key difference between an audit plan and an audit strategy is that the former is based on the latter.

What is preliminary audit strategy?

A preliminary audit strategy is not a detailed specification of auditing procedures to be performed the in completing the audit. Instead, it represents the auditor's preliminary judgments about an audit approach, and is based on certain assumptions about the conduct of the audit.

What are the steps of audit planning?

The steps to preparing for an internal audit are 1) initial audit planning, 2) involve risk and process subject matter experts, 3) frameworks for internal audit processes, 4) initial document request list, 5) preparing for a planning meeting with business stakeholders, 6) preparing the audit program, and 7) audit ...

Why is Audit planning and strategies important?

An effective audit planning can adequately measure risks and derive the strategic insights needed to manage and mitigate the threats facing your organization. In a world of ever-growing governance, risk, and compliance obligations, the audit process is no exercise in turning on checks.

What is a good audit plan?

It should be designed to identify potential risks, evaluate controls in place, and provide recommendations for improvement: To create an effective audit plan, it is important to start by clearly defining the objectives of the audit.

What is inherent risk in audit?

Inherent risk is the risk posed by an error or omission in a financial statement due to a factor other than a failure of internal control. In a financial audit, inherent risk is most likely to occur when transactions are complex, or in situations that require a high degree of judgment in regard to financial estimates.

What is the audit strategy of Deloitte?

Our audit approach focuses on understanding the clients' global business and control issues from the inside out. It combines a rigorous risk assessment, diagnostic processes, audit testing procedures as well as a continuous assessment of our clients' service performance.

What are the benefits of strategic audit?

Pros: The strategic audit aids to recognize the key areas of the case implicated. It also helps to prepare a direction plan, which means to determine the current position in the case involved and to plan the required strategy.

What is audit strategy substantive procedures?

Substantive Procedures Defined

A substantive procedure is a process, step, or test that creates conclusive evidence regarding the completeness, existence, disclosure, rights, or valuation (the five audit assertions) of assets and/or accounts on the financial statements.

How do you ensure effective Audit planning?

What key action you take when establishing the overall audit strategy?

What is the best audit approach?

To ensure such a level of accuracy and reliability of your financial statements, the Risk-Based Auditing Approach is one of the most effective methods available. Auditing could be for an entire organization or a particular function or a production phase.