MODULE SIX PLANNING AN AUDIT OF FINANCIAL STATEMENTS
MODULE SIX PLANNING AN AUDIT OF FINANCIAL STATEMENTS
PSA three hundred Redrafted "Planning an Audit of Financial Statements" states that the auditor should plan the audit so that the engagement will be performed in an effective manner.
a. It involves establishing the overall plan for the engagement and developing an audit plan strategy and a detailed approach for the expected nature, timing and extent of the audit.
b. It involves the engagement partner and other key members of the engagement team to benefit from their experience and insight and to enhance the effectiveness and efficiency of the planning process.
One. Adequate planning of the audit work accomplished among others the following:
One. Adequate planning of the audit work accomplished among others the following:
a. It ensures that appropriate attention is devoted to important areas of the audit b. It enables the auditor to identify potential problems and resolve them on a timely basis c. It helps to ensure that the engagement is properly organized and managed in order to be performed in an effective and efficient manner.
d. It assists in the proper assignment of the engagement team members.
e. It facilitates the direction and supervision of engagement team members and review of their work.
f. It assists in coordination of work done by auditors of components and experts.