Audit planning is the process of preparing to direct the audit of the economic entity.At this stage, the expert determines the characteristics and features of the client's business, based on which picks up the specific methods and techniques of the work.
auditor should a responsible approach to the planning stage, as any errors or omissions made ineffective and useless all further work.In addition, it is necessary to understand that the test result under these circumstances would be distorted.Current legislation regulates the planning of the audit.Federal standards require the necessity of drawing up a common strategy and a detailed tactical plan for its implementation.But the regulations contain only general rules for checking details each audit firm develops its own and establishes in the founding documents.
Audit planning should be subject to the main principles:
- optimal;
- complexity;
- continuity.
first principle implies the existence of several variants of the audit methodology that allows you to choose the most rational and appropriate for the company of each business entity.
complexity means that all the techniques and methods of audit activity should be aimed at achieving the main objectives, and verification steps - interact with each other.
Accordingly, the principle of continuity implies an organization of work, in which each group is clearly established, the auditor carries out the task given to him, which ensures continuity of the verification process.
When is planning the audit, you need to create documents such as a letter to perform the verification agreement with the auditor for services, financial reporting entity, strategic and tactical plans.First of all, we should listen to the client, to know what he expects from the audit, some aspects of its concern in the first place, as well as to find out whether there is significant matters that may affect or have an impact on the performance of the company.Then the specialist conducts a preliminary audit of the balance sheet, in order to identify appropriate methods for a thorough examination of financial records in the future.That is, there comes a stage of gathering information about the economic entity.The auditor has the right to interview the staff of the client, learn interesting information directly from the manager or receive data from third parties.
After evaluating the effort and labor costs for a particular client audit organization decides whether to cooperate with him and sets a specific value of their services.This information it reports to a legal entity in the letter of the inspection.But the start of the audit firm can only after the response letter, which is made in the form of consent or request, and the signing of a bilateral agreement.
At the stage of drawing up strategic and tactical plan is carried out statutory audit reports and assessed the internal control system of the enterprise.A specialist on the basis of the data determines the permissible limit distortions and errors, and also evaluates the level of risk, that is, the ability to issue a conclusion as the final result is not true.The auditor has the right to consult with colleagues on specific issues or to consult with a competent person.And in the final stage of the order of the head of the auditing firm approved by the group that will implement the developed test programs.
