Page 74 - AA Integrated Workbook STUDENT 2018-19

Chapter 63 4

1.4 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.

1.5 Interim and final audits

Interim audit Final audit

Timing Completed part way through a Takes place after the year-end at a
client's accounting year time agreed with the client which
(i.e. before the year-end). enables them to file their financial
statements with the relevant
Early enough not to interfere with authorities by the required
year-end procedures at the client deadline.
and to give adequate warning of
specific problems that need to be Generally a client would not want
addressed in planning the final the auditor to be performing the
audit. audit at the year-end as this will
cause disruption for the client’s
Late enough to enable sufficient year-end procedures.
work to be done to ease the
pressure on the final audit.

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