Friday, June 2, 2017

AUDIT PLANNING

AUDIT PLANNING
The first generally audit standard of fieldwork requires adequate planning. It states that "the work is to be adequately planned and if assisted should be properly supervised. Size and complexity of the enterprise affect the nature and form of planning. There is a Statement of Standard SAS planning. In addition, SAS 210 knowledge of the business is relevant.
When adequate audit planning is embarked upon it will:
              i.         Establishes the intended means of achieving of the audit.
            ii.         Assist in the direction and control, of work
          iii.         Helps to ensure, that attention is devoted to critical aspects of the audit.
         iv.         And helps to ensure that the work is completely expeditiously.


REASON FOR AUDIT PLANNING
1.     To enable the auditor to obtain sufficient competent evidence for the          circumstances.
2.     To help keep audit costs reasonable i.e. by retaining its clients.
3.     To have a good quality work
4.     To facilitate audit work
      5.   To educate its staff members

AUDIT PLANNING COMMITTEE
Before starting audit each year, there is a need of auditor to have regular meeting with client to discuss current and outstanding matter of previous years management letters. Any specific audit points that have problems should also be tackled.

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