A certain time limit is set for any audit. That is why the correct organization of the audit is very important . It always begins with planning, which is carried out with the aim of correctly determining the entire volume of work, assessing their cost and setting deadlines. Audit planning involves the development of optimal tactics and strategies. In most cases, it is based on three principles: optimality, continuity and completeness.
The principle of completeness is expressed in the fact that all stages of the audit, from the preliminary part to the final procedures, must be coordinated and interconnected.
The principle of continuity assumes that a group of auditors receives related tasks, taking into account the coordination of the planning stages and terms for related business entities.
The principle of optimality provides for variation of planning, which allows you to choose the best audit program.
When planning the audit , a working document is drawn up to conduct a study of the financial activities of the client, a letter of consent to audit, an agreement on its implementation, the general plan and program. First of all, the auditor should pay a visit to the client to determine the purpose of the audit and clarify the desired results. In the process of negotiations, the representative of the audited organization agrees to provide information to evaluate its economic activity. The person conducting the audit should develop a document that will form the basis for assessing labor costs and their cost. This may be the most common questionnaire with a list of questions and tests, which is filled in by the person ordering the test. Preliminary planning of the audit involves such a survey in order to determine the integrity and solvency of the client.
The data obtained help to determine whether there is a need to attract experts and specialists (technologists, lawyers, engineers) to consult on some complex issues that arise during the verification process. The appropriateness of control is also determined. Then a letter is sent to the customer stating that the auditor agrees to complete the work. After that, an agreement is concluded between the two parties, where all the conditions for the performance of work are agreed and agreed, as well as their possible changes. At the same time, it is important that this document is signed immediately before the preparation of the general program and audit plan; otherwise, an unexpected refusal of a client can result in large losses for the audit company.
Drawing up a general plan and program is the most time-consuming stage, completing the planning of the audit. The program determines not only the amount of upcoming work, but also the methods, techniques, as well as analytical procedures for conducting a verification audit and the timing of their implementation. When developing such a document, the inspector identifies areas that are significant for the audit, as well as financial and business operations at the client’s enterprise, which are non-essential. At the same time, important sections of the financial statements are checked in more detail and detail, while insignificant ones allow us to limit ourselves to a partial audit sample.
Despite the fact that the audit planning provides for the advance preparation of the program, it can still be slightly changed and supplemented in the course of the work. This is explained by the fact that during the audit procedures an unexpected result may occur. In this case, the reasons for the changes should be documented.