Chapter 2: Audit Planning, Strategy & Execution:

Benefits:

1.Proper Selection of engagement team

2.Proper organization & Management of Audit Engagement

3.Timely Resolution of potential Problem

4.Direction & supervision of ET

5. Attention to Imp area

6. Easy Coordination in the work done.

Nature & extent of planning: SPC

1. Size & Complexity of auditee

2. Past Exp & Expertise
3. Change in Circumstance

Planning includes audit programming and:

1.AP to be applied at RAP

2.Obtaining understanding of legal & Regulatory framework

3.Determination of materiality

4.Invovlement of experts

5.Performance of other RAP

Overall audit strategy & plan is auditors responsibility

Changes to planning decision:

1.Result of unexpected changes

2.Changes in condition

3.AE obtained from results of AP

Factors while establishing overall audit strategy:

1.Determination of characteristics of audit

2.Reporting objective

3.team effort

4.preliminary work

5.NTE of resources
Benefits :

1. Employment of qualitative resource

2. Quantity of resource to be allocated can be determined
3. Timing of deployment
4. Management of resources

Formulating Audit Programme:

A. Nature of B/s
B. Overall plan
C. System of internal control & A/cing procedure
D. Size & Structure of the org
E. Info of the org business
F. Accing & mng polices

Audit Excecution:

Key Phases-

Execution planning

Risk & Control evaluation

Testing

Reporting
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Group Audit