CA J is in process of planning audit for a large company engaged in business of dealing and manufacturing of pharmaceutical products. Central Drugs…

CA J is in process of planning audit for a large company engaged in business of dealing and manufacturing of pharmaceutical products. Central Drugs Standard Control Organisation (CDSCO), National regulatory Authority under Ministry of Health & Family Welfare is responsible for approval of drugs, conduct of clinical trials and laying down Standards for drugs and control over quality of imported drugs. Auditor is also considering whether to make use of audit evidence obtained in previous audit of the same company. Besides, he is also considering volume of transactions to determine whether it is efficient to rely on internal controls. As part of planning activities, he is also considering extent of substantive audit procedures to be performed. Consider following factors stated from 1 to 5: Reporting requirements required by CDSCO, if anyNeed for specialized knowledge of pharma industryExpected use of audit evidence obtained in previous auditVolume of transactions to consider reliance on internal controlNature and extent of substantive audit procedures Choose the most appropriate factor/combination of factors which could be relevant to CA J in establishing audit strategy: -