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    Module 4 - Planning The Audit Process

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    Lysss Epssss
    The document discusses planning an audit of financial statements, outlining the learning outcomes and objectives of audit planning which include determining the roles of planning, discussing factors affecting the nature and extent of planning activities, and describing documentation requirements. It introduces the topic by stating that planning offers direction to the audit process and that the complexity of a client's business affects the nature and extent of required planning. Students are directed to read pages in their textbook to answer questions about audit strategy, audit plan, audit program, analytical procedures during planning, and using the work of internal auditors.

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    Module 4 - Planning The Audit Process

    Uploaded by

    Lysss Epssss
    52 views3 pages
    The document discusses planning an audit of financial statements, outlining the learning outcomes and objectives of audit planning which include determining the roles of planning, discussing factors affecting the nature and extent of planning activities, and describing documentation requirements. It introduces the topic by stating that planning offers direction to the audit process and that the complexity of a client's business affects the nature and extent of required planning. Students are directed to read pages in their textbook to answer questions about audit strategy, audit plan, audit program, analytical procedures during planning, and using the work of internal auditors.

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    Module 4 - Planning the Audit Process

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    The document discusses planning an audit of financial statements, outlining the learning outcomes and objectives of audit planning which include determining the roles of planning, discussing factors affecting the nature and extent of planning activities, and describing documentation requirements. It introduces the topic by stating that planning offers direction to the audit process and that the complexity of a client's business affects the nature and extent of required planning. Students are directed to read pages in their textbook to answer questions about audit strategy, audit plan, audit program, analytical procedures during planning, and using the work of internal auditors.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    52 views3 pages

    Module 4 - Planning The Audit Process

    Uploaded by

    Lysss Epssss
    The document discusses planning an audit of financial statements, outlining the learning outcomes and objectives of audit planning which include determining the roles of planning, discussing factors affecting the nature and extent of planning activities, and describing documentation requirements. It introduces the topic by stating that planning offers direction to the audit process and that the complexity of a client's business affects the nature and extent of required planning. Students are directed to read pages in their textbook to answer questions about audit strategy, audit plan, audit program, analytical procedures during planning, and using the work of internal auditors.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 3

    COLLEGE OF BUSINESS AND ACCOUNTANCY

    Topic:
     Planning an Audit of Financial Statements
    Learning Outcomes:
    At the end of this module, the student should be able to:

     Determine the objective and specific roles of planning in an audit of financial statements.
     Discuss the factors affecting the nature and extent of planning activities.
     Describe the documentation requirements when planning an audit.
     Demonstrate the major audit planning activities performed by the auditor in the course of
    the audit.
    Biblical Values Integration:
    For I know the plans I have for you,” declares the LORD, “plans to prosper you and not to harm you,
    plans to give you hope and a future.
    -Jeremiah 29:11

    Introduction:
    Planning your life is one of the most powerful and effective ways to attain what you want. Nobody plans
    to fail; they simply fail to plan. Put another way, failing to plan is akin to planning to fail.
    Think about this for a second: if you travel, you plan your trip. If you are getting married, you plan your
    wedding. If you throw a party, you plan the event. You would not dream of doing any of the above without
    some form of prior planning. Living a life of success filled with meaning, happiness and fulfillment is no
    different. Yet most people neglect to plan their lives and then get disappointed and discouraged when they
    do not attain what they want. When you take the time to plan your life, you are taking the steps necessary
    to not only identify and reach your desired goal, but also to do so in the most efficient manner. Rather
    than relying on pure chance, a life plan details the exact route to take. It helps you get there in the shortest
    time possible without running out of gas.

    Planning offers direction to the entire audit process. In every human undertaking or engagement, it is
    necessary to plan the course of action before these actions are taken. The complexity of the business of
    the client, its forms, and its commercial environment, all affect the nature and extent of the planning
    required.
    Body
    Kindly read pages 157-186 of your reference textbook.

    The following are the guide questions that you may answer during the reading process:
    a. What are the general objectives of planning the audit?
    b. Differentiate audit strategy, audit plan, and audit program.
    c. Explain the planning procedures.
    d. What is the purpose of the analytical procedures performed during the audit planning phase?
    e. Planning is a discrete phase of an audit. Is this statement correct?
    f. May an external auditor use the work of the internal auditor?
    Summary
    Planning an audit involves establishing the overall audit for thc engagement and developing an audit
    plan, in order to audit risk to an acceptably low level. Planning involves the engagement partner and
    other key members of the engagement team to benefit from their experience and insight and to
    enhance the effectiveness and efficiency of the planning process.
    This topic provides guidance to the auditor in making examination in accordance with the generally
    accepted auditing standards on the consideration and procedures applicable to planning and
    supervision, including preparing an audit program, obtaining knowledge of the entity's business, and
    dealing with differences of opinion among firm personnel. Planning and supervision continue
    throughout the audit, and the related procedures frequently overlap.
    References
    PSA 200
    PSA 300
    PSA 315

    PSA 320
    PSA 520
    Escala and Bercasio (2021). Auditing and Assurance Services: Theory and Principles. 2021 Ed. Escala
    Publishing House
    Salosagcol, Tiu, and Hermosilla (2018). Auditing Theory: A Guide in Understanding the Philippine
    Standards on Auditing. 2018 Ed. GIC Enterprises&Co., Inc.

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