Audit planning Reporting Name Course Instructor Date Audit planning Reporting Introduction Audit planning involves the auditor planning the audit of the financial statements such that the audit risk is minimized to the level that is acceptable. Audit planning prevents the auditor from issuing an opinion that is not modified especially when financial statements seems to be misstated materially. During the audit planning the audit strategy is determined and the timing and the nature of the procedures that should be performed. Planning also optimizes the effectiveness and the efficiency during the conduction of the audit. The time taken by one to gather the audit evidence is referred to as efficiency. On the other hand effectiveness refer to the time used in minimizing the audit risk. An audit that is well planned involves planning performing and reporting. During the planning stage the client need to be clearly understood identification of the the firm under audit and also in accordance to the Generally Acceptance Accounting standards. The right steps should be followed when determining selection of the client. More so the internal control procedures should be put in place to ensure audit process and the results interpretation is easy. Lastly when any audit risk is identified the right audit control measures should be put in place to prevent any further risks. References "Chapter 3: Audit Planning Types Of Audit Tests And Materiality Flashcards | Quizlet". Quizlet 2018 https://quizlet.com/23312029/chapter-3-audit-planning-types-of-audit-tests-and-materiality-flash-cards/. Accessed 19 Mar 2018. "Audit Procedures & Techniques For An Internal Audit". Smallbusiness.Chron.Com 2018 http://smallbusiness.chron.com/audit-procedures-techniques-internal-audit-74403.html. Accessed 19 Mar 2018. "Audit Planning I". Wiley.Com 2018 https://www.wiley.com/legacy/products/worldwide/canada/sc/moroney/assets/Auditing_SampleCh03.pdf. Accessed 19 Mar 2018. Srinidhi B. N. and M. A. Vasarhelyi. "Uditor Judgment Concerning Establishment Of Substantive Tests Based On Internal Control Reliability. Auditing:". A Journal Of Practice & Theory vol 1 no. 1 1996 pp. 5(2) 64. Accessed 19 Mar 2018. [...]
In your audit plan cover the steps necessary to determine if you should select the client, the internal control procedures which need to be reviewed, the substantive tests [using accounts receivable a guide], and the final reporting steps. Based on the actual facts in the case determine the emphasis you want to place on various accounts. Also reflect back over your entire accounting program and think about how the accounts are interrelated. For example, when allowance for doubtful accounts is credited the offset is to bad debt expense. Therefore one of the steps should be to trace the debit side of the entry to the balance for bad debt expense.