An audit strategy is developed _______.
A)in response to the risk assessment for each significant account and assertion using the formula for audit risk
B)in response to the risk assessment for each insignificant account and assertion using the formula for audit risk
C)by the auditor, but must be reviewed and approved by management
D)by the auditor, but must be reviewed and approved by the internal audit function

Question

Quizplus · Accepted Answer

An audit strategy is developed in response to the risk assessment for each significant account and assertion using the formula for audit risk. This helps the auditor to plan their approach, determine the nature, timing, and extent of audit procedures, and allocate the resources needed to complete the audit. The strategy must also be reviewed and approved by management.

An Audit Strategy Is Developed _______