Planning and risk assessment

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The precondition for an audit – meaning

The precondition to audit are conditions in which auditors must satisfy themselves that they are complied with before accepting the audit engagement.

There ate two preconditions for an audit:

First, the audited client must use the acceptable financial reporting framework in the preparation of its financial statements. An acceptable financial reporting framework involves the use of acceptable accounting standards such … Read the rest

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Audit strategy- meaning

Audit strategy is the overall plan of the audit which sets the direction, scope, and timing of the whole audit process. Audit strategy is set at the beginning of the audit and is a vital part of the audit planning process.

Audit strategy contains such things as audit materiality, type, and format of audit reports, laws and regulations … Read the rest

Financial audit planning steps.

Financial audit is the independent inspection of an entity financial information to issue opinion on their truth and fairness. It is independent inspection since someone (auditor) who is not the employee or partner in the entity is required to perform the audit.

Financial audit planning is the process of establishing strategy and detailed audit program which will enable the audit … Read the rest

5 Key factors that should be considered when establishing the overall audit strategy.

Audit strategy generally means the combination of audit approach to be used, resources management and allocation, timing of the audit and the way how the audit engagement is managed. For example, the auditor will use risks based audit approach or top-down approach to conduct audit assignment.

In establishing the overall audit strategy, the auditor shall consider the following key factors:

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