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    The document discusses the key aspects of planning an audit in accordance with PSA 300. It outlines that the overall audit strategy sets the scope, timing and direction of the audit to guide the development of the audit plan. The audit plan then describes the nature, timing and extent of risk assessment procedures, further audit procedures, and other planned audit procedures. It also serves as a record of proper planning that can be reviewed and approved prior to performance. Direction, supervision and review of engagement team members depends on factors like entity size and complexity. For smaller entities, the engagement partner may conduct all aspects of the work personally, but it can be difficult to maintain objectivity in judgments and consulting with others may be desirable for complex issues. Documentation of

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    Notes - Planning the audit

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    PSA 300 notes

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    The document discusses the key aspects of planning an audit in accordance with PSA 300. It outlines that the overall audit strategy sets the scope, timing and direction of the audit to guide the development of the audit plan. The audit plan then describes the nature, timing and extent of risk assessment procedures, further audit procedures, and other planned audit procedures. It also serves as a record of proper planning that can be reviewed and approved prior to performance. Direction, supervision and review of engagement team members depends on factors like entity size and complexity. For smaller entities, the engagement partner may conduct all aspects of the work personally, but it can be difficult to maintain objectivity in judgments and consulting with others may be desirable for complex issues. Documentation of

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    © All Rights Reserved
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    60 views1 page

    PSA 300 Notes

    Uploaded by

    joan
    The document discusses the key aspects of planning an audit in accordance with PSA 300. It outlines that the overall audit strategy sets the scope, timing and direction of the audit to guide the development of the audit plan. The audit plan then describes the nature, timing and extent of risk assessment procedures, further audit procedures, and other planned audit procedures. It also serves as a record of proper planning that can be reviewed and approved prior to performance. Direction, supervision and review of engagement team members depends on factors like entity size and complexity. For smaller entities, the engagement partner may conduct all aspects of the work personally, but it can be difficult to maintain objectivity in judgments and consulting with others may be desirable for complex issues. Documentation of

    Copyright:

    © All Rights Reserved
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    of 1

    PSA 300 – Planning

    Overall audit strategy


    - sets the scope, timing and direction of the audit
    - guides the development of the audit plan

    Audit plan
    - includes a description of
    o nature, timing and extent of planned risk assessment procedures
    o nature, timing and extent of further audit procedures (test of controls and/or substantive tests)
    o other planned audit procedures
    - also serves as record of proper planning of audit procedures that can be reviewed and approved prior to performance
    - maybe in the form of standard audit program or checklists, tailored as necessary

    Direction, supervision and review of engagement team members vary depending on factors such as
    - size and complexity of the entity
    - area of the audit
    - assessed risk of material misstatement
    - capabilities and competence of individual team members performing audit work

    Direction, supervision and review for smaller entities


    - when audit is carried out entirely by the engagement partner, questions on direction supervision and review do not
    arise. having personally conducted all aspects of the work, the partner will be aware of all material issues.
    - forming objective view on appropriateness of judgments can present practical problems when the same individual has
    performed the entire audit
    - when complex or unusual issues are involved, it may be desirable to consult with other suitably-experienced auditors or
    professional body.

    Documentation
    The auditor shall document the:
    1. overall audit strategy
    2. audit plan
    3. significant changes made during the engagement to the overall strategy and audit plan and reasons for such changes.

    Additional considerations in initial audit engagements


    1. performing procedures required by PSA 220 (quality control for audits of historical financial statements) regarding
    acceptance
    2. communicating with predecessor auditor, where there has been a change in auditors, in compliance with ethical
    requirements.

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