Planning

Question 1

Recap of stages of an Audit

Answer 1

Obtain audit engagement

Planning

Performing procedures

Review and completion

Reporting

Question 2

Objectives of planning Audit

Answer 2

Ensure attention is devoted to key areas of audit

Identify potential issues and resolve on timely basis

Assign work to engagement team according to ability/ experience

Supervise engagement team ensuring timely review

Question 3

Two sections of planning stage

Answer 3

Establishing overall audit strategy then;

Development of Audit plan

Question 4

Whats the Audit strategy

Answer 4

General strategy which looks at scope and timing of an Audit.

Considers industry knowledge and preliminary analysis- ( Auditor thinks about what they already know to help plan)

Reviews key audit factors e.g risk/ complexity

Nature of audit such as timings and resources needed

Plan supervision of Audit team

Question 5

Audit plan

Answer 5

More detailed than the strategy

Looks at the specific audit procedures for material transactions.

Looks at nature of audit procedures e.g the timing and complexity of audit procedures.

Ensures the Audit complies with International standard of Auditing.

Question 6

Key content of Audit strategy

Answer 6

Understand business environment e.g economic conditions

Understand internal controls

Risk and materiality

Nature, timing and complexity of procedures

Supervision

Question 7

When do we determine the scope of an audit

Answer 7

In the engagement letter.