Audit Planning and reporting
Auditing planning and reporting are two critical stages in whole audit Cycle. Audit planning is before beginning of field work and reporting is last Stage in bank audit Good planning leads to effective Reporting
Planning (also called forethought) is the process of thinking about and organizing the desired activities required to achieve a desired goal. Planning involves the creation and maintenance of a PLAN. As such< planning is a fundamental property of intelligent behavior. This thought process is essential to the creation and refinement of a plan, or integration of it with other plans; that is , it combines forecasting of developments with the preparation of scenarios of how to react to them. In organizations planning is a management process , concerned with defining goals for company’s future direction and determining on the missions and resources to achieve those target .To meet the goals, managers may develop plans such as a business plan or a marketing plan.
CAS 300 Planning an Audit of Financial Statements requires that an auditor plans Their audit to reduce audit risk to an acceptably low level. Audit risk is the risk that An auditor issues an unmodified or clean audit opinion when the financial statements Are in fact materially misstated. The planning stage involves determining the Audit strategy as well as identifying the nature and the timing of the procedures to Be performed. This is done to optimize efficiency and effectiveness when conducting An audit. Efficiency refers to the amount of time spent gathering audit evidence. Effectiveness refers to the minimization of audit risk.
A report is any information work(usually of writing, speech, television, or film) made with specific intension of relaying information or recounting certain events in a widely presentable form. Written reports are documents which present focused, sailent content to a specific audience. Report are are often used to display the result of an experiment, investigation, or inquiry. The audience may be public or private, an individual or the public on general. Reports are used in Government, business, education, science, and other fields.
The final stage of auditing in the audit process is the audit report-the communication of the findings to users. An audit is the independent examination of the expression of opinion on the financial statements of the company by an appointed auditor in pursuance of that appointment and with compliance with statutory obligation. The responsibility for the preparation of the financial statement and presentation of the information included therein rest with the management of the company.
THE MEANING AND NATURE OF AUDIT PLANNING
Audit planning relates to all activities carried out by an auditor In order to determine the objective of an audit engagement. It also involves determining the combination of strategies that the auditor adopts in order to achieve the audit objectives. The audit plan is usually based on a clear understanding of the nature of the clients business and the environment in which the business is conducted. Such an understanding will enable the auditor to establish those crucial matters that must be borne in mind during the audit and those events that the auditor must consider in relation to the transaction of the enterprise during the period. The planning process may generally require that the auditor visits the client’s enterprise to meet with the management of the enterprise. It will also involve a study of other information viz; operational, administrative, legal, and professional which impacts on the client’s business. Audit planning is an an internationally accepted auditing standard. All audits whether small or large must be properly planned. Failure to plan an audit will generally be interpreted as negligence on the part of the...