This is a generally misunderstood topic.

The audit strategy gives an overview of the approach that will be taken by the audit team in order to arrive at an opinion. The audit plan is a detailed guide as to how each aspect of the audit will be achieved. It encompasses the assessment of risk, materiality, the assertions and all other components which must be confirmed in order to satisfy the audit opinion. Quick example Audit strategy: Check control to gain comfort on internal controls; check payables, receivables, inventory and fixed asset for completeness and valuation. Audit Plan: Receivables obtain opening balance, agree to prior year figure; obtain sales ledger, agree figures to customer ledger; test material balances, obtain confirmation from debtors.

Just to add Strategy- Scope, timing and Direction Planning- Approach,Staff, Resources and Allocation