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Audit Planning

The document discusses audit planning, which refers to the planning conducted by auditors to enable an effective and timely audit. It notes that audit planning involves establishing an overall audit strategy and developing an audit plan. Key factors that auditors consider in planning include the complexity of the audit, their knowledge of the client's business, and items the client prepares in advance like the trial balance. The planning helps auditors devote appropriate attention to important areas, identify potential issues, and properly organize and manage the audit engagement efficiently.

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1K views10 pages

Audit Planning

The document discusses audit planning, which refers to the planning conducted by auditors to enable an effective and timely audit. It notes that audit planning involves establishing an overall audit strategy and developing an audit plan. Key factors that auditors consider in planning include the complexity of the audit, their knowledge of the client's business, and items the client prepares in advance like the trial balance. The planning helps auditors devote appropriate attention to important areas, identify potential issues, and properly organize and manage the audit engagement efficiently.

Uploaded by

bhaveshjaiin
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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STD-T.Y.B.COM DIV-A ROLL NO.

8027 AUDIT PLANNING

MEANING OF AUDIT PLANNING


Audit planning refers to the planning by the auditor to enable them to conduct an effective audit in an efficient and timely manner and includes planning about area,scope,depth of transactions to be audited ,time to be devoted, persons to be deployed for audit etc.

HOW TO GATHER EVIDENCE

AUDIT PLANNING

1.OVERALL PLAN 2.AUDIT PROGRAMME

OBJECTIVES OF AUDITING
Audit planning involves establishing the overall audit strategy for the engagement developing an audit plan. Adequate planning

benefit the audit of financial statement in several ways. It help the auditor to devote appropriate attention to important area of audit It help the auditor to identify and resolved potential audit

Planning helps the auditor to properly organize and manage the auditor engagement so that it is performed in an

effective and efficient manner It assists, where applicable, in coordination of work by auditors of companies and experts

FACTORS TO BE CONSIDERED
While planning his audit, the auditor should consider the factors such as complexity of the audit, the environment in which the enterprise operates, his precious experience with the client and knowledge of clients business. The auditor should considered the following factors while planning audit: Complexity of audit The environment in which the entity operates Knowledge of client business

DISCUSSION WITH CLIENT


Many auditor see that clients prepare certain data and
o o o o o o o o o

schedule before commencement of audit work. Such preparation is necessary generally on the following items: Trial Balance Cash Debtors Investment Inventories Fixed Assets Current Liabilities Long Term Liabilities Corporate capital

OVERALL AUDIT PLAN


As per AAS 8 the auditor should consider the following matters while developing his overall plan for the audit 1. Terms of his appointment 2. His statutory duties 3. Nature and timing of his report 4. Accounting policies adopted by client and changes in those policies 5. New accounting or auditing statement issued by ICAI

6.Identifying Important area of audit. 7.Deciding what material for audit purposes 8.Nature and extent of audit evidence to be obtained. 9.Work of internal auditors and their involvement in the audit. 10.Deciding requirement for audit staff and their co-ordination.

THANK YOU

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