Planning and Developing the Audit Strategy
Section 2 is 25-35% of the AUD exam, and planning questions appear in nearly every sitting — expect 2-4 MCQs on AU-C 300 planning requirements. The #1 AICPA trap is confusing who initiates predecessor/successor communication (the SUCCESSOR initiates, not the predecessor). Candidates frequently miss that AU-C 300 requires the auditor 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 details specific procedures. Questions testing the audit risk model (AR = IR x CR x DR) often appear in planning contexts, requiring candidates to calculate detection risk and then determine the appropriate 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