StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Audit Planning - Coursework Example

Cite this document
Summary
Auditors are not exempted from the planning exercise. Auditors have to plan prior to their practise to ensure that they lay audit strategies that would…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER98.2% of users find it useful

Extract of sample "Audit Planning"

Audit Planning Audit Planning Planning is usually an essential step for any individual or organization in ensuring efficient working in their operations. Auditors are not exempted from the planning exercise. Auditors have to plan prior to their practise to ensure that they lay audit strategies that would enable them perform the auditing efficiently. Planning helps the auditor to identify and devote the necessary attention to areas of importance, identify and resolve time related problems and more importantly organize and manage the audit engagement in an effective and efficient way (Granberg & Hoglund, 2011).

For the success of the planning process, an auditor has to observe several steps. They include risk assessment, conducting a survey, planning meeting and definition of scope and objectives of the audit.Risk assessment is purposed to determine the risks involved in the planned audit. These risks if any can be evaluated to determine their levels and whether or not to be included in the current review. It also helps in deciding the extent of involvement of professionals with the specialised skills during the review process.

In most occasions, these assessments are discussed with the firm’s department to get their perspective on the risks identified and their views.A preliminary survey is conducted to allow an auditor get an overall understanding of the various departments within an organization and their operations. This helps in planning on time and resource allocation to the different audit areas. It also helps in identification of the direction, management and supervision of resources. This stage also enables auditors to design the strategy of the audit process for effective exercise and on time management.

After completion of the survey, a meeting with the organization’s heads is usually convened. This usually is carried out to discuss the strategies for the audit, and ensure that the information gathered during the survey is accurate and reviewing the level of risk assessed. Discussion of the audit scope and objectives is done at this stage. Documentation of the overall audit strategy and plan is compiled, and then the review process is then rolled to the firm.An effective audit process can be executed if there exists a clear understanding of the client’s business operations.

It is usually a challenge for many auditors to perform their operations without having knowledge of their client’s business. It is a requirement in the International Standards on Auditing for the auditor to have knowledge about the company and its environment (ISA 315), as this will give them professional judgement during the auditing process. An auditor can conduct analysis on the companies balance checks, assets and liabilities and the company’s risks to have an understanding of the client’s business.

He/she can also use a questionnaire to acquire necessary information on both internal and external forces within the company. The information aids in understanding the company’s internal and external environment. Auditors can also obtain information by going through the company’s journals, newspapers, the internet and even annual reports (Granberg & Hoglund, 2011).ISA 315 also requires that all the members of an audit team be acquitted with the potential risk misstatements in every client’s financial statements.

This risk assessment is important since it determines the quantity and quality of evidence that needs to be obtained and the number of staffs to be involved (Granberg & Hoglund, 2011). Assessment are done on both internal and external factors. It includes risks communicated by management and also audit department on annual stake holder’s survey. Concerns about risks that are observed by financial auditors, federal agency auditors and even legislative auditors during an external audit that gives insight into the company’s operations.

In carrying out risk assessments at the audit planning stage, several components have to be considered including defining the context, risk identification, risk analysis, risk evaluation, identification and evaluation of existing controls, communication and consultation on the risks, monitoring and review on regular basis, and filing the risks for further review. These components ensure success in risk assessment process as part of the audit planning process. ReferenceGranberg, L. & Hoglund, L. (2011).The auditors’ way to acquire knowledge about a company’s environment.

Retrieved from http://www.divaportal.org/smash/get/diva2:434617/FULLTEXT01.pdf

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Audit Planning Coursework Example | Topics and Well Written Essays - 500 words”, n.d.)
Audit Planning Coursework Example | Topics and Well Written Essays - 500 words. Retrieved from https://studentshare.org/finance-accounting/1688617-audit-planning
(Audit Planning Coursework Example | Topics and Well Written Essays - 500 Words)
Audit Planning Coursework Example | Topics and Well Written Essays - 500 Words. https://studentshare.org/finance-accounting/1688617-audit-planning.
“Audit Planning Coursework Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/finance-accounting/1688617-audit-planning.
  • Cited: 0 times

CHECK THESE SAMPLES OF Audit Planning

Issue in contemporary auditing

In accordance with the recommendations of Financial Reporting Council (FRC), we would prefer to officially start out our understanding about the audit services you want us to conduct.... These standards necessitate that we plan and perform the audit in order to attain practical assurance regarding if the prepared financial statements determined to be are free from misstatements or not.... Restriction on audit Liability Due to the characteristics of audit and other inherent restrictions, there is always inevitable risk of financial mistreatments to remain undiscovered (Financial Reporting Council, 2012)....
12 Pages (3000 words) Essay

Impact of E-Commerce on Auditing Standards

Issues relating to Audit Planning 5 2.... The most vital factors are Audit Planning and implementation of audit plan.... The literature review section should explain all the issue relating to impact of ecommerce on auditing, issues concerning Audit Planning and issues relating to proper implementation of audit plan.... Issues relating to the implementation of audit plan 8 2.... Apart form these, some parameters relating audit plan and implementation of audit plan should be taken into account in this research in order to measure the effect ecommerce on these variables....
13 Pages (3250 words) Dissertation

Auditing and Assurance Services (Australian)

1% - 2% of pre – tax income) and the preliminary materiality level should be set accordingly and documented through the Audit Planning documents.... Introduction The following discusses how the issue of the delays and cost overruns on the Waratah Project will impact the planning for the audit of Downer EDI.... The audit plan will, thus, include procedures to gather “audit evidence of events or conditions and related business risks” that will impact the Group's “ability to continue as a going concern” (ASA 570, par....
3 Pages (750 words) Assignment

Audit and Internal Control Issues at Sucre Delights

In the second part, the report discusses the information required and procedures to be performed for the purpose of Audit Planning and risk assessment of the entity.... Report To: Jean-Pierre Christophe CEO, SUCRE DELIGHTS LTD From: Manager Date: 23 May 2012 Subject: audit and Internal Control Issues - Sucre Delights Limited Keeping in view the weaknesses in the internal control and management practices in relation to maintaining effective internal control, different areas of concerns are discussed in this report....
6 Pages (1500 words) Coursework

Role of Planning in Auditing

Audit Planning is a two-way function that involves setting goals and Planning in auditing the books of FXT International Limited will ensure that the auditing process produces the maximum out of the minimum.... planning is an essential part of auditing because it enables an auditor to plan the audit exercise so that they can perform such an exercise effectively.... Concisely, some of the factors that Abacus will consider when planning the audit include: ...
3 Pages (750 words) Essay

Why Auditor Should Plan Audit Work Well

It will also discuss the benefits that accrue from conducting a risk assessment at the planning stage of the audit.... In order to have an appropriate basis upon which an opinion will be expressed in regard to the financial statements, an auditor is required to plan his audit work well and implement it in order to obtain a reasonable assurance whether or not the financial statements are free of… According to the Public Company Accounting Oversight Board's (2015) findings, the reasonable assurance is obtained by an auditor by reducing the audit risk to an appropriately low level....
6 Pages (1500 words) Assignment

Appropriate Places to Use Audit Sampling

According to the ISA 530, audit Sampling and Other Selective Testing procedures, audit sampling, can be applied to all audit assignments aimed at examining the account balances items....
1 Pages (250 words) Coursework

Audit of Financial Statements

… The paper "audit of Financial Statements" is an extraordinary example of an assignment on finance and accounting.... Arranging an audit of Financial Statements obliges that the arranging phase of the review ought to be utilized to make a general procedure for the review, create a review arrange, and diminish review danger to an acceptably low level.... The paper "audit of Financial Statements" is an extraordinary example of an assignment on finance and accounting....
1 Pages (250 words) Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us