Planning includes consideration of the timing of certain activities and audit procedures that need to be completed prior to the performance of…
CA Intermediate · Auditing and Ethics · MTP · May 2024
Planning includes consideration of the timing of certain activities and audit procedures that need to be completed prior to the performance of further audit procedures. For example, planning includes the need to consider, prior to the auditor's identification and assessment of the risks of material misstatement, certain matters. Discuss those matters.
Suggested Answer and Working Notes:
Prior to auditor's identification and assessment of risks of material misstatement, planning includes the need to consider following matters: The analytical procedures to be applied as risk assessment procedures.Obtaining a general understanding of the legal and regulatory framework applicable to the entity and how the entity is complying with that framework.The determination of materiality.The involvement of experts.The performance of other risk assessment procedures.
Topics: Audit Strategy, Audit Planning and Audit Programme
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