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1.2 Audit plan

The strategy sets the overall approach to the audit; the plan fills in the operational
details of how the strategy is to be achieved.

The audit plan should include specific descriptions of:

 the nature, timing and extent of risk assessment procedures.

 the nature, timing and extent of further audit procedures, including:

– what audit procedures are to be carried out

– who should do them

– how much work should be done (sample sizes, etc.)

– when the work should be done (interim vs. final)

 any other procedures necessary to conform to auditing standards.

1.3 Planning procedures for initial engagements (new audit clients)

 Review the previous auditor’s working papers.

 Consider matters highlighted when professional clearance was obtained.

 Consider matters discussed with management during acceptance.

 Perform audit procedures required by ISA 510 Initial Audit Engagements –
Opening Balances.

 Perform additional quality control procedures.

In addition, the auditor should

 allow additional time and resource to obtain an understanding of the client

 use a more experienced audit team to reduce detection risk.

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