Audit Planning Memorandum Audit Planning Memorandum n Audit

Audit Planning Memorandum n Audit Planning Memorandum is prepared To set out the objectives

Elements of audit planning memorandum n Background n n information about the audited entity;

Elements of audit planning memorandum n Audit objectives General Objectives - set out the

Elements of audit planning memorandum n Audit approach n n summarising the testing to

Elements of audit planning memorandum n Resources and timing the date of starting and

Elements of audit planning memorandum n Key contacts at the entity n listing one

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Audit Planning Memorandum

Audit Planning Memorandum n Audit Planning Memorandum is prepared To set out the objectives of the audit n To spell out how the auditor aims to achieve these objectives n n It is also a tool to monitor the progress of the audit and n promotes high quality and professional audit work. n

Elements of audit planning memorandum n Background n n information about the audited entity; Materiality the overall materiality level the auditor chose and n any exceptions, e. g. if the auditor has chosen a separate, lower materiality level for certain figures; n n Risk assessment n the auditor’s assessment of risks, taking into account their opinion of the control

Elements of audit planning memorandum n Audit objectives General Objectives - set out the relevant constitutional and legal provisions n Main Objectives - this will be the accuracy of the financial statements and the legality and regularity of the underlying transactions n Specific Objectives - any audit work in addition to the main objective. For example, to investigate an area of special interest or to follow up a recommendation from a previous n

Elements of audit planning memorandum n Audit approach n n summarising the testing to be undertaken, the extent of substantive testing the extent to which the auditor intends to use analytical procedures, if at all. If yes, the auditor would set out the account figure they plan to test in this way, and how they will make the forecast. . For instance, for testing salaries, the auditor may use personnel records and salary rates to make a forecast and would therefore note the sources of information they aim to use.

Elements of audit planning memorandum n Resources and timing the date of starting and completing the audit n the number of days the audit team would spend at the offices of the entity n responsibilities and tasks allotted to the team members n and dates of discussion with the auditee and to take into account the comments furnished by them n the dates of finalisation of report. n

Elements of audit planning memorandum n Key contacts at the entity n listing one or more important persons within the audited entity, including names, department, postal address, telephone number, and e-mail address