The document discusses the key aspects of audit planning including establishing the overall audit strategy, developing an audit plan to reduce risk, gathering audit evidence, developing an overall audit strategy consisting of the audit strategy, plan, and program, obtaining knowledge of the entity's business, developing flexible and cost-beneficial plans and programs, and using analytical procedures during planning, risk assessment, and overall review. It also covers supervision involving developing an overall strategy and planning involving directing assistant efforts.
The document discusses the key aspects of audit planning including establishing the overall audit strategy, developing an audit plan to reduce risk, gathering audit evidence, developing an overall audit strategy consisting of the audit strategy, plan, and program, obtaining knowledge of the entity's business, developing flexible and cost-beneficial plans and programs, and using analytical procedures during planning, risk assessment, and overall review. It also covers supervision involving developing an overall strategy and planning involving directing assistant efforts.
The document discusses the key aspects of audit planning including establishing the overall audit strategy, developing an audit plan to reduce risk, gathering audit evidence, developing an overall audit strategy consisting of the audit strategy, plan, and program, obtaining knowledge of the entity's business, developing flexible and cost-beneficial plans and programs, and using analytical procedures during planning, risk assessment, and overall review. It also covers supervision involving developing an overall strategy and planning involving directing assistant efforts.
The document discusses the key aspects of audit planning including establishing the overall audit strategy, developing an audit plan to reduce risk, gathering audit evidence, developing an overall audit strategy consisting of the audit strategy, plan, and program, obtaining knowledge of the entity's business, developing flexible and cost-beneficial plans and programs, and using analytical procedures during planning, risk assessment, and overall review. It also covers supervision involving developing an overall strategy and planning involving directing assistant efforts.
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Planning – establishing the overall audit strategy for the engagement and developing an audit plan in
order to reduce audit risk to an acceptable level
Gathering of all corroborating audit evidence – adequate planning of the auditor doesn’t help in accomplishing this.
True / False The client should plan the audit work so that the audit will be performed in an effective manner. True The auditor should develop and document an overall audit plan describing the scope and conduct of the audit. True
Audit planning involves development of an overall (3)
- Audit strategy - Audit plan - Audit program
True / False Obtaining knowledge of the entity business is an important part of the planning the audit work. True The auditor’s knowledge of the entity’s business assist the identification of events, and practices which may have a material effect on the financial statements. True
The auditors plan should be:
- Flexible - Cost beneficial
True / False The overall audit plan and the audit program should not be revised during the course of the audit. False The auditor should develop and document an audit program setting out the nature, timing and extent of planned audit procedures required to implement the overall audit plan. True
True / False According to PSA 300, the auditor may discuss elements of planning with those charged with governance and the entity’s management. False
The audit plan sets the scope, timing and direction of the audit guides the development of the more detailed overall audit strategy. True
The overall audit strategy is more detailed than the audit plan and includes the nature, timing and extent of audit procedures to be performed by engagement team to obtain sufficient appropriate audit evidence to reduce audit risk to an acceptable level. False
Analytical procedure is not required in – substantive test procedure during evidence gathering
Analytical procedure is are required in
- risk assessment procedure performed during planning - overall review of audit completion The objective of performing analytical procedures in planning an audit engagement is to identify the existence of: - unusual transaction and events
An auditor most likely perform in audit planning of FS – compare FS to anticipated result
Analytical procedures used in planning an audit should focus on – enhancing the auditor’s understanding of the client’s business
In designing audit programs, an auditor should establish specific audit objectives that relate primarily to the – Financial statements assertions
Procedures which not performed as part of planning an audit engagement – test of control
Analytical procedures – audit procedure that least costly to perform
There is an inverse relationship that exist between the acceptable levels of detection risk and the – assurance provided by substantive tests
True / False Supervision involves developing an overall strategy for the expected conduct and scope of the audit. True
True / False Planning involves directing the efforts of assistants who are involve in accomplishing the objectives of the audit and determining whether those objectives where accomplished. True
