Vita Zitkauskas, the senior on the audit of Magna International, was explaining how audit strategy and audit plans have an impact on tests of controls and substantive procedures. She made two statements: Audit strategy details the audit procedures to be used when testing controls and when conducting detailed substantive audit procedures.
The audit plan provides the basis for developing an audit strategy.
Which statements were true, if any?
A) (i) only
B) (ii) only
C) (i) and (ii)
D) neither (i) or (ii)

Question

Quizplus · Accepted Answer

Statement (i) is incorrect because the audit strategy outlines the overall approach and scope of the audit, not the specific procedures. Statement (ii) is incorrect because the audit strategy is developed first, and it provides the framework for the audit plan, not the other way around.

Vita Zitkauskas, the Senior on the Audit of Magna International