Auditing

AUDIT PLANNING, CONTROLLING AND RECORDINGPLANNING (Refer to ISA 300)Planning refers to developing a general dodge and a detailed approach for the expected disposition, timing and boundary of the study. The auditor should plan his pass away to enable him to conduct an efficient audit in an efficient and timely manner. The form and nature of the planning required for an audit will be unnatural by the size and complexity of the organization, the commercial environment in which it operates method of processing transactions and reporting requirements to which it is subject. Advantages of good audit planningIt establishes the intended means of achieving the objectives of the audit.It assists in the direction and control of the work. A good plan assists in the puritanical utilization of assistants and in the coordination of work done by other auditors and specialists.It helps to ensure that aid is devoted to important areas of the audit. The planning process identifies potential bad areas. E.g. areas with weak internal controls where more detailed substantive interrogatory should be carried out.It helps to ensure that audit work is completed efficiently through more efficient use of time and proper allocation of work to audit staff.

Ensures proper division of work between interim and final audit to avoid repetition of work already done.The audit plan takes into consideration measure when information needed for audit purposes is available and when the client is not very busy. This encourages co-operation by ensuring less disruption of clients work.Audit planning covers;Developing an overall plan for the expected mount and conduct of the audit. The overall plan is recorded in a planning memorandum.Developing an audit programme showing the nature, timing and extremity of audit procedures to be applied at every train of audit testing.In order to plan his work adequately the auditor need to understand the nature of the clients business, its organization, its methods of operating and the... If you want to fetch a full essay, order it on our website: Orderessay

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