In planning an audit, the auditor first established the audit plan then develop the audit strategy for the engagement.Group of answer choicesTrueFalse

Answer

True

In the auditing process, the auditor typically follows a structured approach to ensure the audit is planned effectively. This begins with establishing an audit plan, which outlines the scope, objectives, and resources required for the audit. It serves as a roadmap for the audit process.

Once the audit plan is established, the auditor then develops the audit strategy. The audit strategy is a more detailed plan that outlines how the auditor will carry out the audit work, including the specific audit procedures to be performed, the timing of the audit, and the allocation of resources.

The sequence is crucial because the audit strategy is dependent on the overall audit plan; it translates the broader goals and context into specific actions that need to be taken during the audit engagement. Thus, the statement is true, as the auditor first establishes the audit plan before developing the audit strategy.