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The form and content of working papers are affected by matters such as:
1. The nature of the engagement
2. The form of the auditor's report
3. The nature and complexity of the entity business
4. The nature and condition of the entity accounting and internal control systems.
5. The specific methodology and technology the auditor's use
Audit planning activities should
* establish an audit plan*
* establish the overall audit strategy. for the engagement
- Without under taking a program of planning, the auditor risks going in blind, that being the
risk of forming an incorrect opinion on the financial statements
- There are requirements
*Risk assessment
* identifying the risks of material misstatement
* Relying on tests of control from previous audit
For the risk assessment procedures (Risk Assessment Procedures) it when developing the overall audit strategy, the auditor risks inherent in estimating the financial statements level, and at the development of the audit plan, the auditor linking this estimate balances basic accounts and a range of transactions level assertions, or to assume that the risks inherent in high for assertions. The auditor's assessment of the risks of material misstatement at the level of each of the financial statements and the level of the account balance or the type of operations
Taking into account the continuity established (Going Concern), when planning the audit, the auditor should take into account events or circumstances that may give rise to doubt about the entity's ability to continue. Because this account allows for discussions at appropriate times more with management and audit management plans and resolve any matters that have been the continuity of a private entity identified. The auditor's assessment of management estimates of the entity's ability to continue.
The major matters that affect the audit plan are as follows:-
1. Understanding the nature of the business.
2. Understand the recording of the financial transactions and application of accounting policies
3. The objectives and strategies of the organisation.
4. Internal controls relating to accounts.
5. Assessing client's business risk, accepted audit risk, control risk.
6. Understand the work required by us (auditors).
