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4. Design an overall audit strategy for the engagement

The audit strategy has set the overall timing of the whole audit as well as the resources
required for the audit. As the audit strategy is broad and encompases the audit plan, the audit
letter has been signed, and the audit engagement team with the adequate skills, competence
and experience in similar engagements has been identified. Regular meetings with the
selected audit engagement team have been held to ensure that all members are adequately
informed.

The audit strategy has also set the direction, timing and scope of the audit and also
included the statement of key decisions needed to properly plan the audit.

The audit strategy for First Capital Bank is based on the following characteristics:

1. The Direction of the audit which include the characteristics of the engagement,
reporting objectives

2. Timing of the audit

3. Scope of the audit

1 The direction of the audit

Characteristics of the engagement

Integrity

The audit for First Capital Bank will be founded upon professionalism, that is the audit
engagement team will be honest, responsible and diligent when perfoming the audit.
Professionalism and competence will also be demonstrated when perfoming the
audit.impartiality will be exercised.

Fair presentation

The findings for First Capital Bank, will be reported in a manner that is accurate and
truthfull.

Due professional care

The audit for First Capital Bank, will be done in such a way that good judgement and due
diligence will applied in the process.

Confidentiality
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A lot of information that will be gathered and shared during the audit of First Capital
Bank is of a confidential nature. Its security will therefore be secured appropriately.

Independence

The audit of First Capital Bank will be impartial, and the conclusions will be objective,
not being swayed by any member of the management of First Capital Bank.

Evidence based approach

The conclusions of the audit for First Capital Bank will be arrived at in a rational way and
will also be reliable and reproducible, and for this to be possible, the audit process for
First Capital Bank will be systematic and based on evidence.

Reporting objectives

The objective of the First Capital Bank audit is to express an opinion on the bank's
financial statements, the objectives of auditing First Capital Bank are going to be
classified into primary objectives and subsdiary objectives.The main objectives for
auditing First Capital Bank are the primary objectives and the subsidiary objectives are
going to help in attaining the primary objectives.

The primary objectives are going to include:

1. Examining the system of internal check for First Capital Bank

2. Checking arithmetical accuracy of First Capital Bank's financial statements, verifying,

posting, casting, balancing, etc.

3. Verifying the authenticity and validity First Capital Bank's transactions.

4. Checking the proper distinction between capital and revenue nature of First Capital
Bank's transactions

5. Confirming the existence and value of First Capital Bank's assets and liabilities.

The subsidiary objectives are going to include:

1. Detection and prevention of errors.

2. Under or Over valuation of inventory.

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The audit strategy for auditing First Capital Bank has also set the resources required for
the audit and expertise outside our audit firm required for the audit has been identified.
The resources required for auditing First Capital Bank have taken into account the system
complexity of the audit firm, the number of transactions and frequency, the assuarance
which can be can be brought forward from previous audits as well as the envisaged scope
and objectives of the propose audit.

The audit of First Capital Bank started immediately after we were appointed at the end of
the Annual General Meeting held by First Capital Bank and the audit will be completed
between the time management of First Capital Bank finishes preparing their year end
financial report and the date of publication.

The scope of the audit is going to cover the audit objectives and audit procedures for First
Capital Bank's Plant and Equipment, Cash and Bank and Inventory.

REFERENCES

https://googleweblight.com/i?u=https://smallbusiness.chron.com/characteristics-
audit-18425.html&grqid=BBgJu0MR&hl=en-ZW

https://www.iedunote.com/audit-objectives
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