Page 46 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori
2.Team Expertise: The extent of planning activities is influenced by the previous experience and expertise of
the key engagement team members.

(CNO-APSE.080) Planning - A Continuous Process
Shortcut CREAM process
Continuous Process: Planning is not a discrete phase but rather a continuous, iterative process that begins
Shortly after the completion of the previous audit and continues until the completion of the current audit
engagement.
Regulatory Compliance: The planning process involves understanding the legal and regulatory framework
applicable to the entity and assessing its compliance.
Expert Involvement: The planning phase may require the involvement of experts and the execution of
additional risk assessment procedures.
Analytical Procedures: These are used as risk assessment procedures during the planning phase.
Materiality: Determining materiality is a crucial aspect of audit planning.

(CNO-APSE.100) Overall Audit Strategy and Audit Plan - Responsibility of the Auditor
1A. Auditor's Responsibility: The overall audit strategy and audit plan are the auditor's responsibility.
1B. Team Involvement in Planning: The engagement partner and other key members of the engagement
team should be involved in the audit planning. Their involvement leverages their experience, enhancing the
planning process's effectiveness and efficiency.
2A. Discussions with Mgt: The auditor may engage in discussions with the entity's management about the
audit planning. This can include coordinating some planned audit procedures with the entity's personnel's
work.
2B. Preserving Audit Effectiveness: Care must be taken during these discussions to ensure the audit's
effectiveness is not compromised. For example, discussing the nature and timing of detailed audit procedures
with management could make the audit procedures too predictable.

(CNO-APSE.120) Acceptance and Continuance of Client Relationships and Audit Engagements (SA300
based concepts)
Acceptance and Continuance of Client Relationships and Audit Engagements are very important preliminary
engagement activities. It is performed at the beginning of the current audit engagement.

(Shortcut: EAT)
1. Ethical requirements (SA 220): Evaluating compliance with ethical requirements, including independence.
2. Acceptance & Continuance Procedures: As per SQC-1 & SA 220 Engagement partner must ensure proper
procedures for acceptance and continuance of client relationships and audit engagements. Conclusions
regarding acceptance and continuance must be appropriate. Following Points should be considered.
2A. Integrity: Assessing integrity of principal owners, key management, and governance.
2B. Competence: Evaluating engagement team's competence, capabilities, expertise, time, and resources.
2C. Ethical requirement: Checking compliance with relevant ethical requirements.
2D. significant matters: Considering significant matters from current or previous audit engagements.
3. Engagement Terms (SA 210): Establishing an understanding of the terms of the engagement.

(CNO-APSE.140) Contents of an Audit Plan
1. Audit Plan Development: The auditor should create an audit plan, which is more detailed than the overall
audit strategy. This plan includes the nature, timing, and extent (sample size) of audit procedures to be
performed by the engagement team members.
2A. Plan for Risk Assessment Procedures: Under SA 315, the audit plan should include the nature, timing,

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