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Under SA 300, the auditor's plan for tests of controls in the current year is influenced by:
AThe colour of the spreadsheet
BWhether reliance on the entity's controls is planned and the testing rotation for indirect entity controls
CThe fee budget alone
DTime-zone of the team
Answer & Solution
Correct answer: C. The fee budget alone
1. SA 300 / SA 330 link control reliance to the testing approach.
2. Indirect controls may be tested on a rotational basis subject to conditions.
3. Fees, colours, and time-zones do not drive the technical plan.
_Source: ICAI BoS CA Final Paper 3, Ch 2 "Audit Planning Strategy and Execution"_
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