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Planning an audit

Audits are potentially complex, risky and expensive processes. It is vital that
engagements are planned to ensure that the auditor:

 devotes appropriate attention to important areas of the audit

 identifies and resolves potential problems on a timely basis

 organises and manages the audit so that it is performed in an effective and
efficient manner

 selects team members with appropriate capabilities and competencies

 directs and supervises the team and reviews their work

 effectively 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.

The planning process

Planning consists of a number of elements. They can be summarised as:

 Preliminary engagement activities:

– evaluating compliance with ethical requirements

– establishing the terms of the engagement.

 Planning activities:

– developing the audit strategy

– developing an audit plan.

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