PPT: Audit Strategy, Audit Planning and Audit Programme - 1 | Auditing and Ethics for CA Intermediate PDF Download

 Page 1


AUDIT PLANNING
Page 2


AUDIT PLANNING
Audit planning:
?Involves  developing a general audit 
strategy and detailed approach for the 
expected conduct of the audit.
?Auditor’s main objective in planning: 
determine the scope of the audit 
procedures to be performed.
Page 3


AUDIT PLANNING
Audit planning:
?Involves  developing a general audit 
strategy and detailed approach for the 
expected conduct of the audit.
?Auditor’s main objective in planning: 
determine the scope of the audit 
procedures to be performed.
Importance of adequate planning of the 
audit work:
? Ensures that appropriate attention is devoted to 
important areas of the audit;
? Helps to identify potential problems;
? Allows the work to be completed expeditiously;
? Assists in the proper assignment and coordination of work, 
and 
? And, it helps ensure that the audit is conducted 
effectively and efficiently.
Page 4


AUDIT PLANNING
Audit planning:
?Involves  developing a general audit 
strategy and detailed approach for the 
expected conduct of the audit.
?Auditor’s main objective in planning: 
determine the scope of the audit 
procedures to be performed.
Importance of adequate planning of the 
audit work:
? Ensures that appropriate attention is devoted to 
important areas of the audit;
? Helps to identify potential problems;
? Allows the work to be completed expeditiously;
? Assists in the proper assignment and coordination of work, 
and 
? And, it helps ensure that the audit is conducted 
effectively and efficiently.
PSA 315 requires the auditor to obtain 
sufficient understanding of the entity and 
its environment including its internal 
control.
Page 5


AUDIT PLANNING
Audit planning:
?Involves  developing a general audit 
strategy and detailed approach for the 
expected conduct of the audit.
?Auditor’s main objective in planning: 
determine the scope of the audit 
procedures to be performed.
Importance of adequate planning of the 
audit work:
? Ensures that appropriate attention is devoted to 
important areas of the audit;
? Helps to identify potential problems;
? Allows the work to be completed expeditiously;
? Assists in the proper assignment and coordination of work, 
and 
? And, it helps ensure that the audit is conducted 
effectively and efficiently.
PSA 315 requires the auditor to obtain 
sufficient understanding of the entity and 
its environment including its internal 
control.
Understanding the Client:
? The auditor should obtain a sufficient level of knowledge 
of the entity’s business to identify and understand the 
events, transactions and practices that may have a 
significant effect on the financial statements. 
? If the auditor understands the operations of the client, 
the auditor is often able to evaluate the reasonableness  
of the client’s estimates.
? It would also include understanding the entity’s 
objectives and strategies, and the related business risks.