You are the team leader of an audit assignment and you are about to conduct an audit for a new audit client. Your audit team consist of 5 newly hired audit associates who have no auditing working experience. You are giving them a briefing before the commencement of the audit. The audit junior raised the following questions pertaining to audit planning, documentation as well as audit evidence and you shall provide an explanation to them.

Required:

(1) What is audit strategy and how do you determine the choice of test of control and substantive testing.

(ii) Explain the importance for auditors documenting their audit work in the course of the audit.

(iii) Explain the benefits of audit planning.

(iv) Based on the requirement of the auditing standards, auditors are required to obtain sufficient and appropriate audit evidence in order to form their audit opinion. Define "sufficient" and "appropriate" audit evidence and discuss the different sources of evidence available to auditors and assess their relative appropriateness.