What is the purpose of the audit strategy?

• A. It establishes scope, timing and direction to guide the audit plan.
• B. It gives overview of the company and audit process.
• C. Both statements describe the purpose of the audit strategy.
• D. It provides detailed procedural steps for each audit test.

Answer: (C)

The audit strategy defines how the audit will be approached at a high level, including the scope, timing, and overall direction, so the audit plan can be shaped to address the most significant risks. It also provides a broad understanding of the entity and the audit process, giving the team the necessary context to tailor the approach. However, detailing procedural steps for each test is not the strategy’s job; that level of detail sits in the audit plan and test programs. Because the strategy covers both setting boundaries and giving contextual guidance, it’s appropriate to say that both statements describe its purpose.