The Audit Plan

The audit plan is more detailed than the overall audit strategy in that it includes the nature, timing, and extent of audit procedures to be performed by engagement team members. Planning for these audit procedures takes place over the course of the audit as the audit plan for the engagement develops. For example, planning of the auditor's risk assessment procedures occurs early in the audit process. However, planning the nature, timing, and extent of specific further audit procedures depends on the outcome of those risk assessment procedures. In addition, the auditor may begin the execution of further audit procedures for some classes of transactions, account balances, and disclosures before planning all remaining further audit procedures.

The auditor should develop an audit plan that includes a description of the following:

a)    The nature and extent of planned risk assessment procedures,

b)    The nature, timing, and extent of planned further audit procedures at the relevant assertion level,

c)     Other planned audit procedures that are required to be carried out so that the engagement complies with generally accepted auditing Standards.

 

The auditor should update and change the overall audit strategy and audit plan, as necessary, during the course of the audit.

 

           The auditor should plan the nature, timing, and extent of direction and supervision      
           of engagement team members and the review of their work.

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