Subodh has recently joined an audit firm as an articled clerk. He was in process of assembling audit working papers in audit file of Cop Limited, as…

The auditor shall establish an overall audit strategy that sets the scope, timing and direction of the audit, and that guides the development of the audit plan. One of the factors to be taken into consideration while establishing audit strategy relates to ascertaining of reporting objectives of engagement to plan the timing of the audit and the nature of the communications required. Some of the instances are given under: The entity's timetable for reportingOrganization of meetings to discuss of nature, timing and extent of audit work with managementDiscussion with management regarding the expected type and timing of reports to be issued including the auditor's reportDiscussion with management regarding the expected communications on the status of audit work throughout the engagement.Expected nature and timing of communications among engagement team members, including the nature and timing of team meetings and timing of the review of work performed. In the given case, working paper highlights that auditor has taken into account expected timelines to plan the audit and nature of the communications required. Since the working paper relates to the statutory audit of a company, the ascertaining of reporting objectives of engagement helps the auditor to plan timing of different audit procedures and also nature of communications.