Planning

In this lesson

1. 0:00 Planning, materiality and assessing risk
2. 1:00 Audit strategy versus detailed audit plan
3. 2:05 Financial reporting frameworks and industry requirements
4. 3:04 Key planning considerations and client access
5. 4:08 Detailed audit plan components and procedures
6. 5:27 Initial engagement planning requirements
7. 6:39 Quality review and opening balance considerations
8. 7:22 Analytical procedures and tests of detail

About this lesson

engagements. Designed for Advanced Audit and Assurance, this foundational material walks you through the distinction between high-level strategic planning and granular execution, helping you understand why proper planning keeps audit risk low and ensures you meet reporting deadlines. In the first part of this lesson, you'll explore what makes an effective audit strategy. This includes identifying the financial reporting framework you're working to (such as IFRS), understanding industry-specific requirements, determining what specialist knowledge your team needs, and confirming you have access to key client personnel and records. You'll also learn when to rely on tests of controls versus substantive testing, how to budget your audit time and costs, and why materiality matters even at the planning stage. The lesson then moves into the practical detail of your audit plan—how to break down your timetable into manageable chunks, assign work to team members, and decide on sample sizes and testing procedures for transactions, balances, and disclosures. You'll discover why new client engagements require additional planning steps, including reviewing the previous auditor's working papers, gaining comfort over opening balances, and allowing more time to understand the client's systems and controls before placing heavy reliance on analytical procedures.

Duration: 8m