Chapter 12
Audit and planning:
Possible questions:
1. When does the planning start
2. Advantages/importance of audit planning
3. 2 parts of audit planning
4. Contents of audit strategy
5. Contents of audit plan
1. The planning of audit starts few weeks before the audit is supposed to start and as
per the international auditing standards it is mandatory to do so.
2. Advantages of audit planning include that auditor can identify important areas of the
company before the audit starts, problems can be resolved timely, the audit will be
an organised audit thanks to the planning, appropriate members can be selected if
the audit is planned beforehand and lastly the auditor can coordinate with the expert
before the audit.
3. The 2 parts of audit planning are overall strategy which is an overall review a birds
eye view so to say and the second audit part is a detailed audit plan which gives us
an inside view or a worms eye view so to say.
4. Contents of an audit strategy:
Understanding the company and its environment
Financial reporting framework
What resources are to be deployed
Availability of client personnel
Use of experts
5. Contents of a detailed audit plan:
Description of nature, timing and extent of planned risk assessment procedures
Description of nature, timing and extent of planned audit procedures
Timetable of planned audit work
Materiality etc
Audit and planning:
Possible questions:
1. When does the planning start
2. Advantages/importance of audit planning
3. 2 parts of audit planning
4. Contents of audit strategy
5. Contents of audit plan
1. The planning of audit starts few weeks before the audit is supposed to start and as
per the international auditing standards it is mandatory to do so.
2. Advantages of audit planning include that auditor can identify important areas of the
company before the audit starts, problems can be resolved timely, the audit will be
an organised audit thanks to the planning, appropriate members can be selected if
the audit is planned beforehand and lastly the auditor can coordinate with the expert
before the audit.
3. The 2 parts of audit planning are overall strategy which is an overall review a birds
eye view so to say and the second audit part is a detailed audit plan which gives us
an inside view or a worms eye view so to say.
4. Contents of an audit strategy:
Understanding the company and its environment
Financial reporting framework
What resources are to be deployed
Availability of client personnel
Use of experts
5. Contents of a detailed audit plan:
Description of nature, timing and extent of planned risk assessment procedures
Description of nature, timing and extent of planned audit procedures
Timetable of planned audit work
Materiality etc
