Overview:

Effective audit planning lays the groundwork for a successful, efficient, and risk-focused engagement. This course provides a comprehensive exploration of the audit planning phase, aligning with professional auditing standards to ensure that resources are directed toward high-risk areas. Participants will learn how to transition from initial client acceptance and risk assessment to the creation of a robust, actionable audit strategy and program.

Target Participants

• Senior and staff internal/external auditors
• Audit seniors, supervisors, and managers overseeing engagement planning
• Compliance officers and risk management professionals
• Corporate governance and finance professionals involved in audit preparation

Course Objectives

By the end of this course, participants will be able to:

• Master Pre-Engagement Activities: Execute client acceptance, continuance, and independence evaluations effectively.
• Assess Risk Accurately: Identify and evaluate business risks, inherent risks, and control risks to shape the audit approach.
• Determine Materiality Thresholds: Calculate and apply overall and performance materiality for financial and operational tests.
• Design Comprehensive Programs: Develop tailored audit strategies, timetables, and multi-disciplinary resource allocations.
• Document the Plan: Construct defensible planning memoranda and initial working papers that meet regulatory and firm quality standards.

Course Content / Outline

• Module 1: Pre-Engagement & Entity Understanding
• Initial client acceptance and continuance procedures
• Ethical requirements and independence confirmations
• Understanding the entity, its industry, and regulatory framework
• Module 2: Risk Assessment & Analytical Procedures
• Identifying significant business and financial statement risks
• Performing preliminary analytical procedures to spot operational anomalies
• Assessing fraud risks and management override potential
• Module 3: Materiality & Scope Determination
• Determining overall planning materiality and performance materiality
• Setting trivial thresholds for accumulated misstatements
• Scoping business units, locations, and significant account balances
• Module 4: Developing the Overall Audit Strategy
• Defining the scope, timing, and direction of the audit
• Establishing the nature and extent of testing (controls vs. substantive testing)
• Coordinating multi-location or specialized component auditor involvement
• Module 5: Audit Programs & Resource Allocation
• Designing specific audit programs linked to identified risks
• Staffing considerations, budgeting hours, and technical resource allocation
• Documenting the comprehensive audit plan and securing supervisory sign-off