Question

discuss the purposes for planning the audit and identify the steps that are performed during this phase of the engagement? A couple of paragraphs about this third phase. Accounting audit

Answer 1

Answer)

The purpose of planning the audit is to identify the important areas which require more attention, identify the degree of reliance that can be placed on internal controls, for staffing needs, preparation of schedule for audit and planning of other necessary resources.

Some of the steps performed during this period:

1) Identify the trends in industry, accounting policies followed by the client and other basic things discussion with the client.

2) Reviewing the previous audit report and finding whether there is any changes in nature business, top management and other recent developments.

3) Reviewing the lastest available financial statements for gaining more idea on the present situation.

4) planning staffing requirements and areas to be allocated.

5) Planning the nature,timing and extension of audit procedures to be performed

6) Identifying whether there is any need of outsourcing any experts or so.

7) Preparation of schedule and intimating it to the client for better coordination with the client.

Accounting audit is noting but review of accounting whether they are prepared and conveyed as per generally accepted laws or principles.

It can be by the internal person or by the independent person and plays keyrole in determining whether the accounts are prepared and conveyed to the interested segments in fairest manner possible.