Explanation Planning stage of auditing: The auditors use a standardized audit plan for beginning an engagement, audit the financial statements, assuring the enterprise resource planning system, or making a recommendation to improve a business process. This standardized method helps the new auditors in contribution to various functions and identifying the priorities of auditing. The audit plan includes the following elements: Methodology: The term methodology refers to the strategy which directs the audit work. Audit scope: It defines the time period, the level of materiality, and the expected time for an audit. Potential risk: The potential risk is the risk that might be present in the financial statements that are being audited. Procedures and specific tasks: The procedures and specific tasks are those which the audit team will execute to collect and analyze the evidence...

Identify the techniques or tests that might be used in the planning stage.

Data Analytics For Accounting

19th Edition

ISBN: 9781260375190

Author: RICHARDSON, Vernon J., Teeter, Ryan, Terrell, Katie

Publisher: Mcgraw-hill Education,

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Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and appl…

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