CA Krish is planning the audit of financial statements of Black and White Limited for financial year 2024-25 with the objective of conducting it in…

(i) Planning is not a discrete phase of an audit, but rather a continual and iterative process that begins shortly after the completion of the previous audit and continues until the completion of the current audit engagement. In the given situation, planning of the audit of financial statements for the year 2024-25 would have commenced right after completion of audit of preceding year in June 2024. It would have continued till completion of audit of year 2024-25. (ii) The auditor shall update and change the overall audit strategy and the audit plan as necessary during the audit. As a result of unexpected events, changes in conditions, or the audit evidence obtained from the results of audit procedures, the auditor may need to modify the overall audit strategy and audit plan and thereby the resulting planned nature, timing and extent of further audit procedures, based on the revised consideration of assessed risks. This may be the case when information comes to the auditor's attention that differs significantly from the information available when the auditor planned the audit procedures. For example, audit evidence obtained through on detailed checking may contradict the audit evidence obtained through testing internal controls.