Summary
Summary Planning the Audit
- Course
- Institution
Auditing planning and all elements entailed including planning materiality as well as the planned audit approach.
[Show more]
Seller
Follow
sjg2797
Reviews received
Content preview
Audit PlanningAudit Plan
Not a discrete phase but rather a continuous and dynamic part of the audit which
usually occurs after acceptance of an engagement or at the end of the previous audit
Benefits of planning
Right amt attention to important issues
Problems areas found and resolved fast
Audit managed efficiently and effectively
Right members allocated
Effective work allocation
Experts and other auditors properly coordinated
Those responsible for audit planning usually hold senior roles with expertise and
experience in area
The Audit must be planned with professional scepticism paying attention to issues
which may cause material misstatement or events during audit which may require
change in plan, scope or objective
Discussion with client
General scope and approach focusing on significant risks, accounts and
accounting policies and changes proposed
Audit limitations
Admin issues
Co-operation with staff
Audit strategy memo is a high-level summary of the overall audit including significant
risks and accounts and an overview of nature, extent and timing of activities.
Audit Plan
Nature, extent and timing of RAPS and testing
Admin and control of audit resources
Programmes and procedures to be followed
Framework for planning
Step 1: Obtaining understanding of entity and environment
, Objective
Enables auditor to identify and assess risk of MMS on an overall level
Helps to plan audit, exercise judgment, identify significant accounts and
transactions
Respond to risks
Aspects to obtain understanding
External Factors
Industry
Regulatory
General economy and indicators
Internal Factors
Business operations
Investments
Financing
Fin Reporting
Objectives and strategies related to business risks
Industry changes
New accounting regs
New products
Etc.
These risks relate to either external or internal factors
Measurement and review of fin performance
Ratios and stats
KPIs
Trends
Use of forecasts, projections and budgets
Analyse documents and reports
Period to period performance
RAPS
Enquiries to those in charge of gov, transactional recording, management, fin
stats, experts
Analytical procedures to find unusual transactions
Observation and inspection of activities, documents, reports, WPs
Step: 2 Obtaining an understanding of the entity’s internal controls and acc info
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller sjg2797. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $2.77. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
50843 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now