Audit Planning

Audit planning means developing a strategy and making a detailed approach for the expected record, time of the audit. The auditor prepares himself to perform the audit effectively and perfectly.

The development of audit:

The following points should be given importance while preparing an audit−

  • Auditor availability
  • Plan to be discussed with other Auditors
  • The internal control system of branches and entities
  • Reliability of internal control system of an organization
  • Investigating important audit areas
  • Impact of legal rules
  • Timing of reports
  • The display of reports to the law authority or higher authorities.

Ways to plan the audit:

1. Research the Audit Area: The entity or function going to be audited must be understood properly, the subject matter should be given priority. The subject matter should be thoroughly searched with the help of external or internal resources. Search the internet or seek someone helps if required but don’t blow a piece of single information.

2. Conduct Process Walk-Throughs

Armed with a working understanding of the function, conduct a special walkthrough with the auditee. Recognize key business objectives, ways to meet objectives, following the rules and regulations. A walkthrough may include a tour of facilities. The information related to character, purpose, volume, or complexity of automated systems, methods, or organizational arrangements must be gathered before the walkthrough. The documents or reports can be scanned for all the general conditions. Such preparations before the audit provide opportunities to interface with the auditee.

3. Map Risks to the Organization, Process, or Function

With the help of research and interviews, classify risks to satisfy business objectives and control employee to alleviate those risks. The rate of risks with the auditee based on probability of occurrence and potential impact should be discussed. Deliberate control design, or mitigating factors to manage if the control system efficiently alleviates risks.

4. Obtain Data Before Fieldwork

This is the most important point to focus upon nowadays. Data research should be emphasized initially. Before performing the fieldwork all the data related to business should be analyzed properly. Confirm the weak points, identify anomalies, and confirm the condition of business which makes target testing easy and the sample collection becomes easy.

Data is normally manipulated for many reasons, therefore it is the most sensitive and important feature for an auditor to give priority. Data can be collected with the help of external or internal connections, or internet research, but internet research might be manipulated.


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