Planning ActivitiesPlanning Activities

Planning Activities

1. The auditor shall establish an overall audit strategy that sets the scope, timing and direction of the audit, and that guides the development of the audit plan.
2. In establishing the overall audit strategy, the auditor shall consider the information obtained from complying with the requirements of ASA 220 and:
   1. Identify the characteristics of the engagement that define its scope;
   2. Ascertain the reporting objectives of the engagement to plan the timing of the audit and the nature of the communications required;
   3. Consider the factors that, in the auditor’s professional judgement, are significant in directing the engagement team’s efforts;
   4. Consider the results of preliminary engagement activities and, where applicable, whether knowledge gained on other engagements performed by the engagement partner for the entity is relevant; and
   5. Ascertain the nature, timing and extent of resources necessary to perform the engagement.[4] (Ref: Para. A9‑A13)
3. The auditor shall develop an audit plan that shall include a description of:
   1. The nature, timing and extent of the planned direction and supervision of engagement team members and the review of their work. (Ref: Para. A18–A19)
   2. The nature, timing and extent of planned risk assessment procedures, as determined under ASA 315.[5]
   3. The nature, timing and extent of planned further audit procedures at the assertion level, as determined under ASA 330.[6]
   4. Other planned audit procedures that are required to be carried out so that the engagement complies with the Australian Auditing Standards. (Ref: Para. A14‑A16)
4. The auditor shall update and change the overall audit strategy and the audit plan as necessary during the course of the audit. (Ref: Para. A17)
5. The engagement partner shall review the overall audit strategy and audit plan.