Can you explain what factors should the auditor consider in developing the overall audit plan?

1. The terms of the engagement and any statutory responsibilities 

2. The nature and timing of the reports 

3. The applicable legal and statutory requirements 

4. The accounting policies adopted by the client and changes in those policies 

5.The identification of significant audit areas

6. The setting of materiality levels for audit purposes 

An audit plan starts with the Risk assessment. While doing risk assessment the auditor starts with the organization then comparing the organization with the same type of other organization. 

 

Once the risk assessment is finalized the outcomes are the areas that need to be more closely audited. A complete SWOT analysis is carried out.

 

There are various interviews within the organization, then auditors analytical skills to get information about the industry practices. 

 

Afterward in case of external audit 

 

Kick off meeting is held 

Estimated number of staff to be allocated 

Estimated number of hours give to the client

FS are obtained 

Materiality is calculated 

audit methodology is finalized and lastly

estimated time for audit to be finalized.

 

 

:The following should be considered 1_The auditor should establish zn overall audit strategy that d steps the sco, timing, and direction of the audit and guides the development of the audit plsn. _In establishing the overall audit strategy,he should take into account the following: *The factors that are significant in directing the activities of the engagement team *The reporting objectives of the engagement and the nature of the communications required *The nature, timing, and extent of resources necessary to per the engagement

Thank you for the invitation.

In developing the overall audit plan, the following should be considered:

• The cycle or number of years an entity intend to cover the audit universe
• The number of audit universe or Units or processes to be covered
• The severity of the risk assessment and materiality of Processes to be audited
• The understanding of the processes to be audited
• Financial requirement 
• Human resources requirement