First step in the audit process is planning.
Planning an audit involves: (a) Establishing the overall audit strategy (b) Developing an audit plan.
“The auditor should plan his work to enable him to conduct an effective audit in an efficient and timely manner. Plans should be based on knowledge of the client’s business”.
Plans should be made to cover, among other things:
❖ acquiring knowledge of the client’s accounting systems, policies and internal control procedures;
❖ establishing the expected degree of reliance to be placed on internal control;
❖ determining and programming the nature, timing, and extent of the audit procedures to be performed; and
❖ coordinating the work to be performed.
Plans should be further developed and revised as necessary during the course of the audit.
