● What is meant by audit planning?

Audit planning means that the action to be taken by an auditor in respect of

any particular field of verification and reporting should be designed that it may
enable the auditor to conduct an audit more effectively

● Write any four facilities of audit planning?

a) Appropriate attention to important and sensitive areas of audit.
b) Prompt identification of potential problems.
c) Proper utilization of audit force available.
d) Utilization of computer facilities and techniques.
e) Effective co-ordination of audit assignment.
● Write any five factors of audit planning?
a) Nature, complexity and size of enterprise.
b) Method of processing transactions.
c) Reporting requirements.
d) Previous experience with the client.
e) Knowledge about the client’s business.
● Write any five points, auditor should consider in developing an overall
audit strategy?
a) Terms engagement and statutory responsibilities.
b) Accounting policies adopted and changes therein.
c) Effect of new accounting and auditing standards.
d) Possible repeat action.
e) Nature and extent of evidence obtained.
f) Involvement of experts.
● What is meant by documentation of overall plan?
The auditor in the end of the first stage of planning should document his
plan. The form and extent of document will depend on the size and complexity of
each individual audit. The auditor should follow time budget technique showing
allocated hours for each audit procedures.

● What is audit programme?

 Audit programme is a written scheme designed by the auditor to identify
the work to be done during the course of audit and to distribute the same among
the staff.

● What is meant by direction and supervision in audit?

After the auditor has prepared audit strategy for the completion of an audit,
he should spell out the directions for his audit staff of various level of knowledge,
ability and experience and also provide for supervision.

● Write down the four advantages of audit programme?

a) It facilitates to monitor the progress of the assistants.
b) Division of work amongst the juniors can be made easily.
c) Planning for future audit can be made easily.
d) Its serves as a material evidence in the court of low.
● What steps would you take before commencing the actual work of audit
upon being appointed as auditor?
a. Appointment
b. Documents
c. Prospectus
d. Contracts
e. List of books
f. Internal check
g. System of accounting
h. Audit programme
● What detail contains in the planning of memorandum?
a) Major change in client’s business.
b) Changes in accounting system and law.
c) Types of products.
d) Method of advertising.
e) Location of offices and plant.
f) Sources of raw materials.
g) Changes in cost and financial problems.
h) Purposes of investment