List of contents

CONCLUSION
Audit is a rather complicated process, besides it is limited in time. Therefore, to ensure the high quality of work, you should carefully prepare for it. A necessary means of such preparation is comprehensively thought-out planning, which would create confidence among performers that the most effective and efficient audit procedures are used.
The audit organization and the individual auditor are obliged to plan their work so that the audit is carried out effectively. Clear planning is also necessary to select the expected approaches to achieving the audit objectives; to perform and control the work; to make sure that attention is drawn to the main aspects, that the work is fully completed.
A lot depends on which procedures, to what extent and in what sequence the auditor applies: whether the results of the audit will be sufficiently objective or not, whether the audit will be more or less time-consuming, more or less risky, etc.
Audit planning is a set of actions for choosing an option that allows achieving this goal, i.e. choosing the strategy and tactics of conducting an audit, choosing the types, volumes and sequence of audit procedures.
The established practice identifies a number of main stages in the preparation and planning process, performed in a certain sequence:
1) preliminary study of an economic entity and its business (preliminary planning);
2) registration of relations with an economic entity (preparation and provision of a letter of commitment to the client, conclusion of a contract);

3) assessment of the reliability of the internal control system of an economic entity;

4) assessment of audit risk components;
5) assessment of the level of materiality (acceptable error);
6) identification of audit-relevant accounting areas (areas with increased internal risk);
7) formation of an audit strategy (selection of the type, scope and sequence of audit procedures);
8) documenting the results of planning (preparation of the audit plan and program).
In this control work, exactly such tasks were set, which are disclosed in full.
Moreover, not only does it serves as a guide for external and internal auditors to check all areas of your organisation’s compliance to the standard, it may also be used by your organisation on external parties such as your suppliers to assess and focus on their performance and effectiveness of their capabilities to provide the required services.