Final answer:
c. considering possible value-added services that could be provided by the auditor
The auditor would assess the need for specialists, identify related parties, and document control risks as part of audit planning. However, considering value-added services is generally not a step in audit planning as it can compromise auditor independence.
Step-by-step explanation:
In developing the strategy and plan for an audit, an auditor would undertake several key steps. These steps typically include assessing the need for specialists on the audit, which involves determining if expert knowledge is required for certain audit areas.
Another critical step is the identification of related parties, as related party transactions can have a significant impact on the financial statements and may require special attention.
Additionally, documenting identified control risks is a crucial aspect of audit planning, as it helps the auditor to understand the areas where the entity’s internal control may be lacking, and which therefore may require more detailed audit procedures.
However, considering possible value-added services that could be provided by the auditor is not typically part of the audit planning process.
While auditors may offer such services, these are generally separate from the audit itself and are not part of the planning of an audit.
The auditor's primary responsibility during an audit is to express an opinion on the financial statements, and offering additional services can potentially compromise auditor independence.