Planning an audit

Any time limit is established for conducting any audit. That is why the correct organization of the audit is very important. It always begins with planning, which is carried out with the aim of correctly determining the entire scope of work, assessing their cost and setting deadlines. Planning an audit involves the development of optimal tactics and strategies. In most cases, it is based on three principles: optimality, continuity and completeness.

The principle of completeness is expressed in the fact that all stages of the audit, from the preliminary part to the final procedures, must be coordinated and interrelated.

The principle of continuity assumes that the group of auditors receives related tasks, taking into account the coordination of the planning stages and the timing for related economic entities.

The principle of optimality provides a variant of planning that allows you to choose the best audit program.

When the audit is planned , a working document is prepared to conduct a study of the financial activities of the client, a letter on the consent for the audit, a contract for its implementation, a general plan and program. First of all, the auditor should pay a visit to the client in order to clarify the purpose of the verification and to clarify the desired results. In the course of negotiations, the representative of the audited organization gives its consent to provide information for assessing its economic activities. The person conducting the audit must develop a document that will form the basis of the assessment of labor costs and their cost. This can be the most common questionnaire with a list of questions and tests, which is filled by the person ordering the verification. Preliminary planning of an audit involves such a survey in order to determine the integrity and solvency of the client.

The obtained data help to determine whether there is a need to involve experts and specialists (technologists, lawyers, engineers) to consult on some complex issues arising in the verification process. It also determines the feasibility of monitoring. Then a letter is sent to the customer stating that the auditor agrees to perform the work. After that, a contract is concluded between the two parties, where all the conditions for performing the work have been agreed upon and agreed upon, as well as their possible changes. At the same time, it is important that this document be signed immediately before drawing up a general program and verification plan, otherwise the unexpected refusal of the client may entail heavy losses for the audit company.

Drawing up a general plan and program is the most time-consuming stage, completing the planning of an audit. The program determines not only the scope of upcoming work, but also methods, techniques, as well as analytical procedures for conducting the audit and the timing of their execution. When developing such a document, the auditor identifies the areas relevant to the audit, as well as financial and business operations at the client's enterprise, which are insignificant. At the same time, important sections of the financial statements are checked in more detail and in detail, and insignificant ones allow us to restrict ourselves to a partial audit sample.

Despite the fact that the planning of the audit provides for the advance preparation of the program, it can still be slightly modified and supplemented in the process of performing the work. This is explained by the fact that in the course of audit procedures an unexpected result may occur. In this case, the reasons for the changes should be documented.