AUDIT PLANNING

BEIGE SDN BHD

Audit Objective: Our objective is to determine whether management systems and controls to
measure and report on efficiency meet expectations.
Audit Scope: We will conduct audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit o obtain sufficient, appropriate
evidence to provide a reasonable basis for our findings and conclusions based on our audit
objectives.
Audit Team: 1) Nurul Fatihah Binti Mil @ Amil
2) Syarifah Faqihah Binti Saiyid Radzuwan
3) Ibad Syakirah Binti Mahmud
4) Shazrina Shazween Binti Suhaimi
5) Alia Husna Binti Abd Aziz

Description Auditor
1. Accept client and perform initial planning. Fatihahmil
2. Prepare an engagement memorandum that includes:
- Audit objectives & scope
- Estimated starting and completion dates Syarifah
- Staff for Engagement
- General questionnaire of background information needed
3. Identify the relevant framework for this audit engagement. Ibad
4. Obtain an understanding with the client & obtain the auditee’s
signature. Fatihahmil
- Auditor sends an engagement letter before the
commencement of the audit.
5. Assign the appropriate staff to the engagement
- Partner (Fatihahmil)
- Manager (Syarifah)
- Senior (Ibad)
- Assistant (Shazrina & Alia)
6. Schedule and conduct a meeting with the auditee. Syarifah
7. Understand the client’s business and industry and gain knowledge
about the client’s operations. Syarifah
- Subscribe to industry publications Ibad
- Review client’s data and reports in several databases and Alia
online sources.
- Discussions with non-accounting employees
8. Assess client business risk. Fatihahmil
Shazrina
9. Examine financial reports to look for strange fluctuations. Ibad
Alia
10. Prepare the working paper for each test.
- Cash Syarifah
- Property, plant and equipment Shazrina
- Income
- expenditure
11. Create a detailed fieldwork program including testing methods for Alia
each objective and sampling plans.
12. Perform testing as specified on the detailed fieldwork program Fatihahmil
Syarifah
Ibad
Shazrina
Alia
13. Review the purchasing process to check whether assets are Ibad
authorized and compliant with the capital expenditure policy and Shazrina
procedures. Alia
- Check whether there is evidence of purchasing an asset
such as a land grant and there is an authorized transaction
happen.
14. Check to see if a fixed asset register is kept up to date with all Syarifah
capital purchases and disposals.
- Obtain a copy of asset purchases evidence
15. Do the physical visit to check whether there are assets purchased. Fatihahmil
Ibad
16. Check the expenditure transaction with the evidence. Shazrina
- Make sure the transaction is match with the evidence given Alia
such as cash payment.
17. Get the bank confirmation letter as evidence to get a true cash Syarifah
balance.
18. Check the evidence for salary income for every month.
- Make sure it matches with the journal entries and statement Ibad
of financial position.
19. Review the income statement and statement of financial position. Fatihahmil
- Recalculate whether the amount stated is correct Shazrina
- Recheck whether the written items and amounts has
existed
20. Ensure the testing are discussed with the affected personnel as Syarifah
encountered. Ibad
Shazrina
Alia
21. Review the work to make sure the working papers are complete: Syarifah
- Have the client’s name, schedule reference, period of the Ibad
audit, objective, subjects, prepared and reviewed by who, Shazrina
and work done lists. Alia
22. Submit working papers for review and clear subsequent review Fatihahmil
notes.
23. Prepare the final report.