explain and distinguish the following concepts with clarity:

Audit strtegy/plan: audit strategy is the big plan eg systems based or substantive based. Plan is the detail: how many audit staff, when to do the audit, when report needed by.

Control procedure: what the client does to establish control eg all overtime payments should be authorised. Autif procedure: what the auditor does to collect evidence about the operation of a control (eg select a sample of overtime claims and ensure each has been authorised by a manager), or substantive tests (such as writing to customers asking them to confirm the balance owing)

Risk factor = area of concern. Amounts on the FS that are particularly prone to material misstatement and which therefore require more audit work. Eg inventory in a jewellery business.

TOC/substantive. TOC = testing that a control operates correctly. Eg select a sample of purchase invoice and ensure that each has been cancelled when paid. Substantive test: nothing to do with controls but directly collecting information about a figure eg write to customer to comfirm balances, trace amounts form invoices to nominal ledger to ensure proper classification.

System based approch: TOC plus limites substantive tests; substantive based approach: no reliance on controls but enhanced substantive testing.