A Better Knowhow On The Course Of Audit Planning
It is mandatory for an auditor to pre-plan his work so as to effectively conduct his job. He should acquire a thorough knowledge of the working status of the client’s venture and should plan accordingly to cover the related major operational areas like
- The client’s way of dealing with their financial accounts, about the strategies they follow and also regarding the internal control measures adopted for making records.
- Moreover, the auditor must be able to proficiently deal with the level of reliability placed on the internal faculty control of the organization.
- Further, one should be able to predetermine certain parameters like the quality characteristics, timing and the duration of the auditing process to be conducted.
- Apart from all these, the most important process involves the capability of coordinating things in a dedicated manner. Sometimes there arises a condition of revising the contents and procedures during the course of the audit. One should be efficiently deal with such unexpected things too.
The law and regulation act of auditors have issued reliable principles regarding the planning scheme to be carried out during the auditing session. This includes
- Making an overall plan which includes deciding the time and details of the audit.
- Working out the programme for the required clarities that can aid the effectiveness of the auditing process.
There are also unexpected situations where the whole auditing process goes for a revision and those reasons also need to documented to make the auditing complete.
The major objectives behind planning
The strategy planning always helps to
- Devote time to analyze and sort out the valuable sections contained in the audit
- Clearly, pinpoint the potential problems that require an immediate solution
- Confirm the timely completion of the accounting and documentation work
- Synchronize the works of both the auditors and other experts that leads to good auditing
The auditor also put his previous experience while working with the clients and the knowledge of the client’s business environment. The auditor may also choose to discuss business and financial prospects with the respective clients in order to make the auditing procedures simpler and thereby saves time. However, the all-around audit planning along with audit programming remains as the auditor’s concern.
While planning for an audit, the auditor should regard the following features
- The convolution of the audit
- The working environment of the business
- The prior experience with the client