Question

Which of the following is not true about audit plan?

• A. Audit plan lays out the strategies to be followed to conduct an audit
• B. Audit plan is made to ensure that audit assignment is done smoothly
• C. Audit plan is not made from audit programme
• D. Audit plan is prepared considering the terms of engagement and statutory reponsibiltiites

Answer 1

The correct option is C Audit plan is not made from audit programme

Audit planning procedures are the first and perhaps the most important step in carrying out a successful audit.
Audit plan is followed by audit program which has the set of instructions to be followed when doing audit.
Following are the features of audit plan:
(i) It lays out the strategies to be followed to conduct an audit
(ii) Audit plan is made to ensure that audit assignment is done smoothly
(iii) Audit plan is prepared considering the terms of engagement and statutory responsibilities.