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Annual Audit Program

Hi Dejan! I'm been watching your videos on Advisera and planning to take the exam. I was wonder under the Annual Audit Programme you said that companies can define their audit criteria? I was wondering from an external audit perspective, wouldn’t the audit compulsorily look at The standard, internal policies and procedure, legislation requirements and Interested parties requirements?

Is there room to say the audit criteria can be scoped to just the standard and not the internal policies etc?