audit planning

audit planning
The steps taken to prepare for an audit. Planning is tailored to the circumstances of individual audits, but typically includes some or all of the following: (i) information gathering to establish the background and circumstances of an entity or activity to be audited; (ii) discussions with an *auditee to ascertain *material facts; (iii) a *risk assessment of the area under audit; (iv) logistical arrangements for visiting the location of an audit; and (v) *analytical review of an organization’s *financial statements and *trial balance. The *professional standards of both external and internal auditors requires careful planning, and the audit planning process normally results in a formal *audit program that sets out the scope of audit work.

Auditor's dictionary. 2014.

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Look at other dictionaries:

  • audit planning memorandum — audit plan …   Accounting dictionary

  • Audit working papers — are the documents which keeping all audit evidences obtained during financial statements auditing. Audit working paper is to be able to support the audit works done in order, sufficient and assurance audit evidences have been obtained and… …   Wikipedia

  • Audit evidence — is evidence obtained during a financial audit and recorded in the audit working papers. [cite web |title=Audit evidence | |date=undated |url= ev g.html |accessdate=2007 08 07] * In the audit… …   Wikipedia

  • audit plan — audit planning memorandum; = audit strategy A document outlining the strategy to be applied to each manageable area of the accounting system and financial statements of an audit client. The plan would take into account the assessed levels of… …   Accounting dictionary

  • audit program — A document that sets out *audit tests. It is generally considered best practice to conclude an *audit planning process with a formal, written program of audit tests, but in practice audit programs vary significantly in detail and sophistication.… …   Auditor's dictionary

  • audit approach — The strategy for an audit, or the manner of conducting an audit. Deciding a suitable audit approach is an essential part of the *audit planning process, and a common decision is the balance to be adopted between *compliance and *substantive… …   Auditor's dictionary

  • audit risk — 1. In external auditing, the *risk of giving an inappropriate *audit opinion on the *fair presentation of an organization’s *financial statements. The *sampling of transactions and the *compliance testing of controls cannot offer cast iron… …   Auditor's dictionary

  • audit software — 1. Computer software programs used to gather and evaluate *audit evidence. Audit software can be used in several evidence gathering ways, including (i) data sorting, (ii) *sampling analysis, (iii) the performance of *walk through tests, (iv) the… …   Auditor's dictionary

  • audit universe — The total potential scope of work within an auditor’s remit. *Audit planning involves the allocation of resources to individual *auditable units within an audit universe, normally on the basis of a combination of the following: (i) *materiality… …   Auditor's dictionary

  • planning — The establishment of objectives and intentional strategies for the achievement of objectives. Planning is considered to be one of the main functions of organizational *management, and it is often analyzed into *short term and *long term aspects.… …   Auditor's dictionary

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