Audit Planning Coursework Example | Topics and Well Written Essays - 500 words

Audit Planning - Coursework ExampleFor the success of the planning process, an auditor has to observe several steps. They include risk assessment, conducting a survey, planning shock and definition of scope and objectives of the audit.Risk assessment is purposed to determine the risks involved in the planned audit. These risks if any fanny be evaluated to determine their levels and whether or not to be included in the current review. It also helps in deciding the extent of involvement of professionals with the specialised skills during the review process. In most occasions, these assessments are discussed with the firms department to get their perspective on the risks identified and their views.A preliminary survey is conducted to allow an auditor get an overall understanding of the various departments at heart an organization and their trading operations. This helps in planning on time and resource allocation to the different audit areas. It also helps in identification of the di rection, management and supervision of resources. This grade also enables auditors to design the strategy of the audit process for effective exercise and on time management.After completion of the survey, a meeting with the organizations heads is usually convened. This usually is carried out to discuss the strategies for the audit, and ensure that the information gathered during the survey is accurate and reviewing the level of risk assessed. Discussion of the audit scope and objectives is do at this stage. Documentation of the overall audit strategy and plan is compiled, and then the review process is then rolled to the firm.An effective audit process can be executed if there exists a clear understanding of the clients business operations. It is usually a challenge for many auditors to perform their operations without having knowledge of their clients business. It is a requirement in the International Standards on Auditing for the auditor to have knowledge about the company and i ts