Importance of proper audit planning.

The objective of auditor per ISA 300 planning an audit of financial statement is to plan the audit work so that the audit will be performed in effective manner.

Importance of proper audit planning include

  • Help the auditor to devote appropriate attention to important areas of the audit
  • Help the auditor to identify and resolve potential problems
  • Help the auditor organize and manage the audit engagement so that it is performed in effective and efficient manner
  • Help the auditor to determine the amount of work to be carried out and therefore assist in determining the number of staff to perform the audit work
  • Allow for direction and supervision of staff and review of their work 
  • Help to ensure that audit work is coordinated with client for example, for production of specific documentation
  • Help to provide a document as a reference for an initial discussion of the approach to the audit with the company’s audit committee

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