Section 2: 25–35%A7

Planning and Developing the Audit Strategy

Exam insight

Planning shows up in nearly every sitting, and within Section 2 (25-35% of the exam) you can expect 2-4 MCQs on AU-C 300 planning requirements. The recurring miss is 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.

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

Patterns in this topic

The exam re-skins the same archetypes. Recognize these here, then drill them in the Pattern Lab.

The Planning PlaybookStrategy before plan, the successor drives predecessor contact, and analytics and brainstorming are required.Whose Work Is ItYou can divide responsibility or assume it, but using others never shrinks your own responsibility.The Audit Risk ModelAudit risk equals inherent times control times detection risk, and the auditor only steers detection risk.

Exam tip

Study smarter: before you expand each card, cover the screen and try to recall what the concept means from its title alone. Retrieving it from memory builds the recall the exam actually tests, and it beats re-reading.