What it is
AU-C 300 requires an overall audit strategy and a detailed audit plan, both documented. The planning memo is where most firms record the strategy and the key planning decisions.
This template follows the planning flow: the entity and its environment, framework, materiality, risk assessment under SAS 145, planned response, team, timing and quality management.
When to use it
- At the start of each audit, reviewed by the engagement partner before fieldwork.
- Updated if significant changes arise during the audit.
What’s inside
- Engagement overview, acceptance and independence
- Understanding of the entity, its environment and internal control components
- Materiality (AU-C 320) and significant risks, including presumed fraud risks
- Planned response, use of specialists and service organization reports
- Team, timing, communications and engagement quality review
Standard cited
This template follows AU-C 300 / AU-C 315. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use. See AU-C 300 explained, AU-C 315 explained.
Questions
What must the audit strategy cover?
AU-C 300 has the strategy set the scope, timing and direction of the audit: the characteristics of the engagement, reporting objectives and timing, factors significant to directing the team’s efforts, results of preliminary activities, and the nature, timing and extent of resources.
Are revenue and management override always significant risks?
AU-C 240 presumes a fraud risk in revenue recognition, which can be rebutted with documented reasons. The risk of management override of controls is present in all entities and cannot be rebutted.
Related templates
- Audit Risk Assessment Worksheet (SAS 145)
- PBC List — Audit Request List (Excel)
- Audit Engagement Letter (AU-C 210)
Last updated 11/04/2026. All free templates.