An audit strategy:
A) is determined by the client.
B) involves determining the amount of time to be spent testing the client's internal controls and conducting detailed substantive testing.
C) sets the scope, timing and direction of the audit.
D) both b and c

Question

Quizplus · Accepted Answer

An audit strategy involves determining the scope, timing, and direction of the audit, which sets the overall plan for the engagement. This plan includes determining the amount of time to be spent on testing internal controls and conducting substantive testing, which are both part of the audit strategy. The client does not determine the audit strategy, but provides information and access to records necessary for the auditor to develop their strategy.

An Audit Strategy