Planning and Developing the Audit Strategy
Section 2 is 25-35% of the AUD exam, and planning questions show up in nearly every sitting, expect 2-4 MCQs on AU-C 300 planning requirements. The #1 AICPA trap is mixing up who starts predecessor/successor communication (the SUCCESSOR starts it, not the predecessor). Candidates also miss that AU-C 300 requires you to document the overall audit strategy AND the audit plan as separate items, the strategy is the high-level scope and direction, while the plan spells out specific procedures. The audit risk model (AR = IR x CR x DR) often appears in planning questions, asking you to calculate detection risk and then set the right nature, timing, and extent of procedures.
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What AICPA wants you to know
- 1Distinguish between the overall audit strategy and the detailed audit plan
- 2Describe required planning activities for an audit engagement
- 3Explain predecessor/successor auditor communication requirements
- 4Understand the engagement team discussion about fraud risks
- 5Identify the role of the engagement partner in planning