[PDF] combined audit strategy

What are the four audit strategies?

Essentially there are four different audit approaches: the substantive procedures approach the balance sheet approach the systems-based approach the risk-based approach.
This is also referred to as the vouching approach or the direct verification approach.

What are the audit strategies?

The audit strategy sets out in general terms how the audit is to be conducted and sets the scope, timing and direction of the audit.
The audit strategy then guides the development of the audit plan, which contains the detailed responses to the auditor's risk assessment.

What are the two types of audit strategy?

– Risk-Based Approach: In this case, auditors perform risk evaluations to identify all the potential misstatement risks. – System-Based Approach: This approach involves the auditors testing and validating a business's internal control after comprehending the business's process.

What are the two types of audit strategy?

The audit strategy is based on the following considerations: