Mastering Audit Planning_ Key Factors Revealed
Transcript
00:00Welcome back, students.
00:02Today, we're going to explore the factors that affect the reporting objectives,
00:06timing of the audit, and the nature of communications.
00:09Understanding these factors is essential for effective audit planning and execution.
00:14Let's get started.
00:16Several key matters influence the reporting objectives,
00:19timing of the audit, and the nature of communications during an audit engagement.
00:23Let's dive into each of these important elements.
00:26Firstly, the company's timetable for reporting plays a crucial role.
00:30This includes interim and year-end financial reporting deadlines.
00:35Auditors must align their audit schedule with these deadlines to ensure timely reporting.
00:40Secondly, the schedule of meetings with management and those charged with governance,
00:44including the audit committee, is important.
00:47These meetings are essential for discussing the nature, extent, and timing of the audit work.
00:53Thirdly, the expected type and timing of reports to be issued must be considered.
00:58This includes the auditor's report, management letters,
01:01and communications to those charged with governance.
01:04Understanding the reporting requirements helps in planning
01:07and delivering timely and relevant audit outputs.
01:10Fourthly, communication with component auditors, experts, and internal audit is crucial.
01:16This involves coordinating with these parties regarding the expected types
01:20and timing of reports resulting from their work on the audit.
01:23Fifthly, the size, complexity, and number of locations of the client
01:28will affect the timing of visits to the client.
01:31For example, complex manufacturing facilities may require more detailed planning and extended visits.
01:37Lastly, the extent and complexity of computerization at the client
01:42will also impact the timing of visits.
01:44The availability of data and personnel for assistance with computer-assisted audit techniques,
01:49CATS, must be considered to ensure effective use of technology in the audit.
01:54Let's consider an example.
01:56ABC Audit Firm is planning an audit for XYZ Limited.
02:00They start by understanding XYZ Limited's reporting timetable,
02:05including interim and year-end deadlines.
02:08They schedule regular meetings with XYZ Limited's
02:11management and audit committee to discuss audit progress.
02:14They plan the types and timing of reports to be issued,
02:18including the auditor's report and management letters.
02:21They coordinate with component auditors and experts to ensure timely and effective communication.
02:26They consider the size, complexity, and number of locations of XYZ Limited
02:32planning visits accordingly.
02:34They also assess the extent and complexity of computerization
02:37at XYZ Limited and plan for the availability of data and personnel for CATS.
02:42This thorough planning helps ABC Audit Firm ensure a comprehensive and effective audit.
02:48Understanding these matters is critical as it ensures that the
02:51audit is conducted efficiently and effectively.
02:54It helps auditors align their work with the client's reporting requirements
02:58and facilitates clear and timely communication with all parties involved.
03:02To summarize, the key matters affecting reporting objectives,
03:06timing, and communications during an audit engagement are
03:10Company's timetable for reporting 2.
03:13Schedule of meetings with management and those charged with governance 3.
03:17Types and timing of reports to be issued 4.
03:20Communication with component auditors, experts, and internal audit 5.
03:25Size, complexity, and number of locations 6.
03:29Extent and complexity of computerization.
03:32By understanding and addressing these matters,
03:35auditors can ensure a thorough and effective audit.
03:38Thanks for watching!
03:39If you found this video helpful, like, share, and subscribe for more insights.
03:45See you next time!