Audit Strategy (3)

Question 1

Significant factors, preliminary engagement activities, and knowledge gained on other engagements (materiality)

Answer 1

Determination of materiality

Question 2

Significant factors, preliminary engagement activities, and knowledge gained on other engagements (misstatement)

Answer 2

Areas identified with higher risk of material misstatement

Question 3

Significant factors, preliminary engagement activities, and knowledge gained on other engagements (audit)

Answer 3

Results of previous audits

Question 4

Significant factors, preliminary engagement activities, and knowledge gained on other engagements (scepticism)

Answer 4

Need to maintain professional scepticism

Question 5

Significant factors, preliminary engagement activities, and knowledge gained on other engagements (committment)

Answer 5

Evidence of management’s commitment to design, implementation and maintenance of sound internal control

Question 6

Significant factors, preliminary engagement activities, and knowledge gained on other engagements (framework)

Answer 6

Changes with applicable reporting framework which may involve significant new or revised disclosures

Question 7

Significant factors, preliminary engagement activities, and knowledge gained on other engagements (volume)

Answer 7

Volume of transacitons

Question 8

Significant factors, preliminary engagement activities, and knowledge gained on other engagements (disclosures)

Answer 8

Process used by management to identify and prepare disclosures

Question 9

Significant factors, preliminary engagement activities, and knowledge gained on other engagements (business)

Answer 9

Significant business developments

Question 10

Significant factors, preliminary engagement activities, and knowledge gained on other engagements (industry)

Answer 10

Significant industry developments

Question 11

Significant factors, preliminary engagement activities, and knowledge gained on other engagements (framework)

Answer 11

Significant changes in financial reporting framework

Question 12

Significant factors, preliminary engagement activities, and knowledge gained on other engagements (Other)

Answer 12

Other significant recent developments