The engagement scope must be based on which of the following?

The engagement scope is fundamentally linked to the objectives established for the engagement. This alignment ensures that the scope is tailored to effectively address the specific goals of the audit. By focusing on the objectives, the auditor can determine the necessary procedures, resources, and areas of emphasis required to fulfill the engagement's purpose. This approach allows for a structured investigation that effectively assesses the relevant risks and compliance requirements within the organization.

While the risk management policy, auditor's discretion, and findings from previous audits may influence the engagement and provide valuable context, they do not define the scope in the same direct manner that the established objectives do. The objectives serve as the foundation, guiding the auditor on what needs to be accomplished during the engagement. Thus, establishing the appropriate scope based on clear and defined objectives enhances the effectiveness and relevance of the audit process.