Statement 1: The establishment of the overall audit strategy and the
detailed audit plan are not necessarily discrete or sequential process but
are closely inter-related.

Statement 2: The auditor shall establish an overall audit strategy that
guides the development of audit plan.

(a) only Statement 1 is correct

(b) Only Statement 2 is correct

(c) Both Statements 1 & 2 are correct

(d) Both Statements 1 & 2 are incorrect