Planning

ACCA F8考试：Planning

1 Objective

The relevant standard for audit planning is ISA 300 Planning an Audit of Financial Statements.

During planning, the auditor's objectives are to:

devote appropriate attention to important areas;

identify potential problems and resolve on a timely basis;

organise and manage the engagement in an effective and efficient way; and

assist in assigning appropriate staff to the audit, directing and supervising them then finally reviewing their work.

2 Scope

Planning entails developing:

an overall audit strategy (using professional judgement and scepticism) which sets the scope, timing and direction of the audit;

a detailed approach (developed from the strategy and again using professional judgement and scepticism) for the nature, timing and extent of audit procedures to reduce audit risk to an acceptable low level—the audit plan; and

adequate two-way communication between the auditor and those charged with governance.

The engagement partner and other key engagement team members must be involved in planning the audit, including any discussions among other engagement team members concerning developing the strategy and plan. The engagement partner must take full responsibility for the audit strategy and plan.

3 Planning Activities

Planning activities include:

Initial evaluation of the ability to continue to carry out the audit of the client.

Considering the effect of a modified audit report, management (weakness) letters and points forward (for attention of next audit) from the prior audit, including an assessment of uncorrected misstatements.

Developing the overall audit strategy (scope, timing and direction of the audit).

Establishing the resources required including, audit team members, their experience, the use of external experts and time budgets.

Developing the detailed audit plan in terms of the nature, timing and extent of audit procedures.

Establishing the necessary direction, supervision and review procedures (which will depend on the nature of the audit, the assessed risk of material misstatement and the experience of each audit team member).

Changing, as necessary, the audit strategy and the audit plan as the audit progresses.

Establishing and maintaining communication with those charged with governance and management.