Arif Agri products is a manufacturer of automatic machines used for agriculture purposes. Your auditing firm is the audit engagement partner for the company from the past fifteen years. You are responsible for the audit of Arif Agri products for this year.

The following are the main elements of the financial statements:

1. Net profit for the year OMR 38 Million,

2. Total assets of the company OMR 78 Million

3. Total debts OMR 50 million. (The debt includes the loan from the bank Muscat and sundry creditors)

Arif agri products import the raw material from USA, German and Japan. The Settlement of the purchases through US dollars. For this purpose the company opened a bank account in HSBC Oman and maintaining transaction in US dollars.

You are conducting the current year audit for Arif Agri products, there are many of the new assistant auditors joined your team for the first time.

Required:

1. Are all audit plans be same? Can an auditor follow the standard audit plan for all audit engagement. Justify (4 Marks)

2. An audit plan is necessary when new staff member is assigned to an audit engagement Justify (4 Marks)

3. Why should an auditor document the audit plan? (2 Marks)