Audit Approach

When selecting an audit approach to respond to your risk assessment, consider the following:
  • Limited Procedures
    - Preliminary analytical procedures, other risk assessment procedures, and final analytical procedures are considered sufficient and no audit program will be created for the audit area. This approach isn't appropriate for significant audit areas.
  • Basic Procedures
    - The audit program for the area will include primarily substantive analytical procedures and certain tests of details required by auditing standards or regulations. This approach ordinarily is not appropriate to respond to a fraud risk or other significant risk.
  • Extended Procedures
    - The audit program for the area will include the basic procedures plus procedures for additional assurance related to assertions for which you indicated there is a high risk of material misstatement (or moderate risk of material misstatement if fraud or other significant risks exist).