Planning is not a discrete phase of an audit, but rather a continual and iterative process that often begins shortly after the completion of the…

As per SA 300, “Planning an Audit of Financial Statements”, planning is not a discrete phase of an audit, but rather a continual and iterative process that often begins shortly after (or in connection with) the completion of the previous audit and continues until the completion of the current audit engagement. Planning, however, 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, 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.