Audit planning is defined as the process in which the strategy is designed to conduct the expected result which also defines the scope of audit inside the company. The size, nature and the time for the audit plan may vary. It depends on the size of the business. If the business is spread to the large scale, the strategy making and its implementation will take more time and also the overall scope of Audit plan may also increase. It’s basically the step by step methodology where the audit in control reviews the financial process and the internal environment along with the engagement preparation.
We can also say the audit plan as the designing of processes which will help to review the financial events. The aim of doing audit planning primarily to make the financial statement error free and secondly the time for reviewing or cross checking the financial events should be done in less time. Planning in audit facilitates the overall business and the most hectic job for rectifying the accounts will now be done in lesser time.
Preparing the audit plan for your company can be the most stressful or frustrated job especially when there is no strategy been implemented previously. For making the audit planning, a common auditor goes through these basic steps:
1. He has to conduct mock audits
2. Define the roles and responsibilities of the accountants
3. Should conduct risk assessment for the company
4. Close out the audit findings.
These would help the company’s auditor to easily assess the business which their firm performs. The Audit planning helps to notate major risk in audits inside the company. The protocols the company’s internal financial events, another job for the auditors are to control and get the overall testing done before and after the year’s end. These strategies are very much important for the company’s efficiency.