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Chapter 53 4

Planning process

1.1 Benefits of planning

 Attention is devoted to important areas

 Potential problems are identified and resolved on a timely basis

 The audit is organised to ensure it is performed in an effective and efficient way

 Staff with an appropriate level of competence can be selected

 Facilitates direction, supervision and review of audit work

 Coordinates the work of others such as experts and internal audit.

Planning ensures that the risk of performing a poor quality audit (and ultimately giving
an inappropriate audit opinion) is reduced to an acceptable level.

In order to achieve the overall objectives of the auditor, the audit must be conducted
in accordance with auditing standards.

1.2 Conducting the audit in accordance with auditing standards

 Ensures that the auditor is fulfilling all of their responsibilities.

 Allows a user to have as much confidence in one auditor's opinion as another's
and therefore to rely on one audited set of financial statements to the same
extent that they rely on another.

 Ensures that the quality of audits internationally, is maintained to a high
standard (thereby upholding the reputation of the profession).

 Provides a measure to assess the standard of an auditor's work (necessary
when determining their suitability as an authorised practitioner).

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