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Audit Plan - Efficient and Effective manner OLD COURSE –(M19R/M21M/M21E/
QNO Bhaskar CNO C2OC.020 M18M/M19M/N19R/M23R)
C2OC.020

“The auditor should plan his work to enable him to conduct an effective audit in an efficient and timely
manner. Plans should be based on knowledge of the client’s business” Discuss stating clearly the broad
points you would be covering in framing plan to conduct audit in an efficient and effective manner.
OR
Plans should be made to cover acquiring knowledge of the client’s accounting systems, policies and
internal control procedures. Explain
Answer ➢ “The auditor should plan his work to enable him to conduct an effective audit in an efficient and
timely manner. Plans should be based on knowledge of the client’s business”.
Plans should be made to cover, among other things:
acquiring knowledge of the client’s accounting systems, policies and internal control
procedures.
establishing the expected degree of reliance to be placed on internal control.
determining and programming the nature, timing, and extent of the audit procedures to
be performed; and
Coordinating the work to be performed.

➢ Plans should be further developed and revised as necessary during the course of the audit.
SA-300, “Planning an Audit of Financial Statements” further expounds this principle. According to
it, planning is not a discrete phase of an audit, but rather a continual and iterative process that
often begins shortly after (or in connection with) the completion of the previous audit and
continues until the completion of the current audit engagement. The auditor shall establish an
overall audit strategy that sets the scope, timing and direction of the audit, and that guides the
development of the audit plan.

Audit Planning -- Not a Discrete Old Course -- (M20R/M21R/ SM17/N18M/N18E/N19R/SM20/SM21)
QNO
C2OC.040 Phase
Bhaskar CNO C2OC.040
Planning is not a discrete phase of an audit, but rather a continual and iterative process. Discuss.
OR
Planning is not a discrete phase of an audit, but rather a continual and iterative process that often
begins shortly after the completion of the previous audit and continues until the completion of the
current audit engagement. Analyse and Explain.
OR
Planning is not a discrete phase of an audit, but rather a continual and iterative process that often
begins shortly after (or in connection with) the completion of the previous audit and continues until the
completion of the current audit engagement. Discuss stating clearly the broad points you would be
covering in framing plan to conduct audit in an efficient and effective manner.
OR
Plans should be further developed and revised as necessary during the course of the audit. Explain.
Answer ➢ Planning is not a discrete phase of an audit but rather a continual and iterative process. It often
begins shortly after (or in connection with) the completion of the previous audit and continues
until the completion of the current audit engagement. The auditor shall establish an overall audit
strategy that sets the scope, timing and direction of the audit, and that guides the development of
the audit plan. Planning includes consideration of the timing of certain activities and audit
procedures. It also involves Audit Programming.
➢ Planning includes the need to consider such matters as:
o A- The analytical procedures to be applied as risk assessment procedures.
o M-The determination of materiality.
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