1. Planning
ISA 300

2. Planning
SUMMARY
Preliminary Audit Audit Review
Activities Strategy Plan

3. Planning
Wider aspects
When How Much Preliminaries
Depends on:
On Completing Last Audit
(control deficiencies / 1) Size and complexity of Evaluating compliance with
unadjusted errors) client relevant ethical requirements,
including independence.
As Audit Progresses - 2) Previous experience with the
significant event changing the client, and Establishing an understanding
plan of the terms of the
3) Any changes in engagement.
circumstance that may occur
during the audit.

4. Planning
Wider aspects
When How Much Preliminaries
Depends on:
On Completing Last Audit
(control deficiencies / 1) Size and complexity of Evaluating compliance with
unadjusted errors) client relevant ethical requirements,
including independence.
As Audit Progresses - 2) Previous experience with the
significant event changing the client, and Establishing an understanding
plan of the terms of the
3) Any changes in engagement.
circumstance that may occur
during the audit.

5. Planning
Wider aspects
When How Much Preliminaries
Depends on:
On Completing Last Audit
(control deficiencies / 1) Size and complexity of Evaluating compliance with
unadjusted errors) client relevant ethical requirements,
including independence.
As Audit Progresses - 2) Previous experience with the
significant event changing the client, and Establishing an understanding
plan of the terms of the
3) Any changes in engagement.
circumstance that may occur
during the audit.

6. Planning
Wider aspects
When How Much Preliminaries
Depends on:
On Completing Last Audit
(control deficiencies / 1) Size and complexity of Evaluating compliance with
unadjusted errors) client relevant ethical requirements,
including independence.
As Audit Progresses - 2) Previous experience with the
significant event changing the client, and Establishing an understanding
plan of the terms of the
3) Any changes in engagement.
circumstance that may occur
during the audit.

7. Audit Strategy

8. Audit Strategy
Logistics
Managing Resources

9. Audit Strategy
Logistics
Managing Resources
Planning Results
Of the audit

10. Audit Strategy
Logistics Scope
Managing Resources of the audit
Planning Results
Of the audit

11. Audit Strategy
Logistics Scope
Managing Resources of the audit
Planning Results Reporting
Of the audit Objectives

12. Audit Strategy
Identify the Scope
Eg. a group audit engagement will both have wider scope than an SME
audit
Consider the use of the work of internal auditors, external service
organisations, IT on audit procedures, FR framework, the entity’s
business, any business segments, and the availability of client personnel
Reporting Objectives
Any CG requirements?
The nature of other communications such as with
component auditors, and communications to management and to those
charged with governance.
ISA 300 states that audit planning activities should:
• establish the overall audit strategy for the engagement

13. Audit Strategy
Logistics
Such as quality control, how resources are managed, directed and
supervised, when team briefing and debriefing meetings are expected
to be held, how engagement partner and manager reviews are
expected to take place (for example, on-site or off-site), and whether to
complete engagement quality control reviews.
Planning Results
Set initial materiality, any fraud risks, significant events that have
occurred since the last audit, and the results of previous
audits evaluating internal controls (any deficiencies and action taken)
Any other relevant services, eg reviews of business plans or cash flow
forecasts.
ISA 300 states that audit planning activities should:
• establish the overall audit strategy for the engagement

14. Audit Strategy
Nature, timing & resources
The use of specialists, highly experienced auditors for a potentially high
risk audit engagement.
If time pressured, then more resources needed
ISA 300 states that audit planning activities should:
• establish the overall audit strategy for the engagement

15. Planning
A detailed programme giving instructions as to how each
area of the audit will be conducted

16. Planning
A detailed programme giving instructions as to how each
area of the audit will be conducted
1
Nature, timing and extent of planned
risk assessment procedures

17. Planning
A detailed programme giving instructions as to how each
area of the audit will be conducted
1 2
Nature, timing and extent of planned Nature, timing and extent of planned
risk assessment procedures further audit procedures at the
assertion level

18. Planning
A detailed programme giving instructions as to how each
area of the audit will be conducted
1 2 3
Nature, timing and extent of planned Nature, timing and extent of planned Other planned audit procedures
risk assessment procedures further audit procedures at the so that the engagement
assertion level complies with ISAs.

19. Audit Plan Changes
Updated as Necessary
Information comes that is different to
For example, as a result of unexpected the planned info.
events, the auditor may need to
modify the planned nature, timing and For example, an event creating doubt
extent of further audit procedures, over going concern.
based on the revised consideration of
assessed risks. Or, amend initial risk assessment /
performance materiality, for all, or
part, of the audit, after performing
planning procedures
Audit strategy is not always prepared and completed before
the audit plan, in practice it is typical for the two to be
developed together

20. Documentation

21. Documentation
Key Decisions
1
So docs are vital

22. Documentation
Key Decisions
1
Changes
Document
So docs are vital auditor
2 response

23. Documentation
Key Decisions
1
Changes
Document
So docs are vital auditor
2 response
Standardised
Audit Programmes
3

24. Documentation
Key Decisions
1
Changes
Document
So docs are vital auditor
2 response
Tailored Standardised
Types Audit Programmes
4 3

25. Documentation
Key Decisions
1
Clear Record Changes
all is needed Document
So docs are vital auditor
5 2 response
Tailored Standardised
Types Audit Programmes
4 3

26. Direction & Supervision

27. Direction & Supervision
Plan it!
The amount of detail included in the audit plan
depends on factors such as:
How supervision and review
should be conducted during the 1) The size and complexity of the entity
audit 2) The assessed risk of material misstatement
3) The capabilities of the audit team members.
Inadequate supervision and
review can lead to errors, eg.
selecting inappropriate items for
sampling

28. For Initial Engagements
Client Communicate
Engagement with the
Procedures predecessor
More auditor
Planning
Needed
Planning is a dynamic process that may evolve during
the audit, and should always respond to changes in the
circumstances of the audited entity