Engagement Plan

Free CPA AUD (Auditing & Attestation) lesson in Assessing Risk and Developing a Planned Response. 13 min read, ~1,908 words.

The engagement plan specifies the nature, timing, and extent (NTE) of every audit procedure, broken down by financial-statement area. Three procedure types exist: risk assessment, tests of controls, and substantive procedures (tests of details plus substantive analytics). Substantive procedures are required for every material area regardless of control reliance. Tests...

What this lesson covers

• Content
• Example 1
• Example 2
• Common Mistakes
• Check Your Understanding
• Exam Shortcuts

Learning objectives

• II.A2

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