What is audit plan with example?
"Audit planning" means developing a general strategy and a detailed approach for the expected nature, timing and extent of the audit. The auditor plans to perform the audit in an efficient and timely manner.
How does an audit plan look like?
Typically an audit plan will include sections dealing with business understanding, risk assessment procedures, planned audit procedures ie the responses to the risks identified and other mandatory audit procedures. The audit strategy and audit plan are not fixed once the planning stage of the audit is complete.
What is a good audit plan?
“An effective audit plan provides a systematic means to assign risks into high, moderate and low categories.” After assessing risks, audit leaders need to work with the associated committee and senior management to establish a hierarchy of organizational risks.
How do you write an audit plan for a business?
Designing an audit plan for a financial statement audit involves three items:
- Design specific objectives that will confirm the information on the company's financials.
- Consider the risks associated with each objective. …
- Design specific audit procedures that will achieve the objectives and minimize the risks.
What are the objective of audit planning?
The main objectives of audit plan include: Help audit team members to focus and pay attention to the key risk areas of the audit. Help team members to identify issues regarding the audit and solve them on a timely basis. Help audit team to perform audit engagement in an effective and efficient manner.
What are the 4 phases of an audit process?
Although every audit process is unique, the audit process is similar for most engagements and normally consists of four stages: Planning (sometimes called Survey or Preliminary Review), Fieldwork, Audit Report and Follow-up Review. Client involvement is critical at each stage of the audit process.
What are the 7 audit procedures?
Audit procedures to obtain audit evidence can include inspection, observation, confirmation, recalculation, reperformance, and analytical procedures, often in some combination, in addition to inquiry.
How do you prepare an external audit plan?
5 Tips To Prepare For Your External Audit
- Understand the Standard. …
- Identify Your Subject Matter Experts (SMEs) …
- Allocate Resources to the Experts. …
- Determine Your Internal Procedures. …
- Gather Documentation for Your Procedures. …
- Define Your Objectives. …
- Announce the Audit. …
- Conduct an Audit Entrance Meeting.