How does audit planning assist in the conduct of an audit?

Auditing and Assurance Revision Questions and Answers

ISA 300 ‗planning‘ states that the main objective of planning is to enable the audit to be performed in an effective manner.

The purposes of planning are:-

To ensure that appropriate attention is paid to the different areas of the audit. This involves, ensuring that adequate time, for example, is devoted to the audit of stocks, which are usually higher risk, and that petty cash which is usually lower risk, is not over audited.

  • To ensure that potential problem areas are identified such as weaknesses in the control over creditors, which might lead to a material understatement.
  • To facilitate review
  • To assist in the proper allocation of work to the audit team
  • Facilitates co-ordination of work done other auditors and experts.



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