Planning An Audit And Audit

2003 Words May 12th, 2015 9 Pages
1. Planning an audit is one the most important phase in an audit because without enough planning programme, the auditor risks taking the work blindly which increases audit risks which will lead to forming an informed opinion on the financial statements. There are many areas in audit planning that will themselves lead to misunderstanding or misrepresentation and many auditors have fallen under criticism for lack of proper planning documentation. It is from the filed documentation that inspectors can conclude that file documentation reflects the real amount of planning done.
The auditor will be able to have abroad view of the business at this initial stage, planning. It is from this understanding or knowledge that enables the auditor to work out a work plan. This understanding gives direction in areas to focus on which in turn influence the opinion given depending on the fair presentation of the areas focused. The information at the planning stage is also important in determining the level of cooperation by the client.
In audit of Elementary Plc group, the audit risks from the information provided will be on gathering substantial information on the entire company considering it has subsidiaries. The main challenge is that audits of the subsidiaries are carried out by other independent auditors. Establishing the amount of work that the subsidiary auditors have done will mean inspecting all their work. While Tomos, the chief financial officer has resigned on personal grounds,…
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