An audit plan explains the expected scope and functioning of the procedure under which financial books of a company are minutely inspected to ensure they are accurate. Audit plans make sure priorities within the audit process are addressed and direct the nature, timing and extent of the program’s success.
Prepare the audit plan well. The audit plan needs to include certain preliminary checks, such as the updating of all pertinent information, a review of risk, and, if possible, coordination of the process.
Carry out a preliminary audit overview. This process gives insight into the audit plan and the entire scope of the audit. Discuss with relevant stakeholders matters such as the completion date, the process of the audit and even any matter relating to tax office guidelines. It is important to know exactly what role each member within the audit team will play..
Gather all available information. This ensures that as detailed information as possible can and will be used for the actual audit. For evidential purposes, the information collected needs to be confirmed.
Review all gathered information. This helps to identify whether or not the audit scope should be redefined. As this is the final step prior to the actual audit, the auditor must ensure that all key issues are addressed and that a risk hypothesis has been developed. As the auditor will now begin to develop a position, any necessary adjustments to the audit scope should be made.
Robert Gitachu has been tutoring and writing since 2007. His work appears on eHow, where he shares his experience in banking and financial markets. Gitachu has a Master of Business Administration in finance from Franklin University and a Master of Business Administration in strategic business management from the University of Nairobi.