CA E is auditor of LM Ltd. Before commencing with current year's audit, he initiated planning for the audit. Planning includes the need to consider…
CA Intermediate · Auditing and Ethics · PYQS · May 2024
CA E is auditor of LM Ltd. Before commencing with current year's audit, he initiated planning for the audit. Planning includes the need to consider certain matters, prior to the identification and assessment of the risk of material misstatements. Enumerate such matters.
Suggested Answer and Working Notes:
Nature of Audit Planning- A Continuous and iterative process: Planning includes the need to consider, prior to the auditor's identification and assessment of the risks of material misstatement, such matters as: 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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