Brief description four parts of audit strategy.

Brief description four parts of audit strategy.

1. Characteristics of the engagement.
Financial reporting framework (country specific standards or IASs)
Company law requirements
Industry specific requirements (eg. health and safety regulation)
Reporting currency.
Number of location of client premises.

2.Reporting objectives, timing of the audit and nature of communication.
deadline-timetable.(submitting the accounts to the client, submitting VAT records)
Type of communication (responsible person, meetings , emails)

3, Significant factors and preliminary engagement activities.
Volume of transactions(materiality level, sample size, fees and auditing team composition
Significant business developments. (new stores, new lines of business, new suppliers)
Results from previous audits, qualified report issued fraud , error identified in previous year, should use professioned sceptism)

4. Nature, timing and extent of resources
Budgets ( prepared by audit manager, indicating the amount of time that should be spent on every area/ how much time each member should spend )
consider the need for using external professional advice (proper valuer, lawyer etc)

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