# Planning and Control

This is the beginning of the auditing process.


This section has the following links

# Overall audit strategy and plan

Fill the form with the terms of the audit engagement and any specific legal and regulatory requirements and their impact on the engagement.

# Client acceptance

To ensure sufficient information has been obtained to enable the firm to decide whether to accept the entity as a client of the firm. The questionnaire must be completed at the client acceptance stage.

# Time budgets

Indicate the time budgets and the disbursements for the audit process.

# Materiality

Materiality levels should be estimated at the planning stage by reference to the latest available information and updated once the current year's financial statements are available. Materiality is a judgemental process.

# Analytical review

To use analytical procedure as a risk assessment procedure to obtain an understanding of the entity and its environment; and at the conclusion stage to form an opinion as to whether the financial statements taken as a whole are consistent with our understanding of the business.

# Understanding the entity’s business

To obtain a preliminary understanding of the entity and its business environment. The Form is intended to be carried forward from year to year, with appropriate modifications and placed in the permanent file.

# Understanding the entity and its internal control

To identify areas where internal controls can be relied upon. The control risk in Form 5.10 should be assessed based on the preliminary understanding of the control environment and internal controls specific to the audit area. The key controls to be relied upon should be recorded in the form, tested for the effectiveness of their design and effectiveness of operation throughout the period. Where the actual results differ from the expected, the risk assessment in Form 5.10 and the nature, timing and extent of the audit procedures in the audit programmes should be re-defined to obtain sufficient and appropriate audit evidence to support the audit opinion.

# Risk assessment and approach to assessed risk

To review the client's business in order to reach preliminary conclusions on the degree of risk associated with the respective audit areas and to determine the risk reduction factors and sampling intervals that can be applied when determining the sample sizes.

# Assessment of fraud risk

To obtain an understanding of the entity sufficient to identify and assess the risk of material misstatements of the financial statements due to fraud.

# Points brought forward from previous audit

Note down any points brought forward from previous audit and points carried forward to subsequent audit.

# Permanent Audit File Review Checklist

The purpose of this Permanent File Checklist is to set out the minimum documentation that should be included in the client’s permanent file.

Last Modified: 7/9/2019, 10:45:48 AM