book

Audit Planning: A Risk-Based Approach

by K. H. Spencer Pickett

August 2013

Intermediate to advanced

304 pages

7h 3m

English

Wiley

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INTRODUCTIONRISK-BASED AUDIT-PLANNING MODEL: PHASE ONERISK-BASED AUDIT-PLANNING MODEL: PHASE TWORISK-BASED AUDIT-PLANNING MODEL: PHASE THREERISK-BASED AUDIT-PLANNING MODEL: PHASE FOURRISK-BASED AUDIT PLANNING MODEL: FINALSUMMARYNOTES
INTRODUCTIONBASIC PLANNING MODEL: PHASE ONEBASIC PLANNING MODEL: PHASE TWOBASIC PLANNING MODEL: PHASE THREEBASIC PLANNING MODEL: PHASE FOURBASIC PLANNING MODEL: FINALSUMMARYNOTES

INTRODUCTIONCORPORATE RISK REGISTER MODEL: PHASE ONECORPORATE RISK REGISTER MODEL: PHASE TWOCORPORATE RISK REGISTER MODEL: PHASE THREECORPORATE RISK REGISTER MODEL: PHASE FOURCORPORATE RISK REGISTER MODEL: FINALSUMMARYNOTES
INTRODUCTIONANNUAL AUDIT-PLANNING MODEL: PHASE ONEANNUAL AUDIT-PLANNING MODEL: PHASE TWOANNUAL AUDIT-PLANNING MODEL: PHASE THREEANNUAL AUDIT-PLANNING MODEL: PHASE FOURANNUAL AUDIT-PLANNING MODEL: FINALSUMMARYNOTES
INTRODUCTIONENGAGEMENT PLANNING MODEL: PHASE ONEENGAGEMENT PLANNING MODEL: PHASE TWOENGAGEMENT PLANNING MODEL: PHASE THREEENGAGEMENT PLANNING MODEL: PHASE FOURENGAGEMENT PLANNING MODEL: FINALSUMMARYNOTES
INTRODUCTIONPROJECT MANAGEMENT PLANNING MODEL: PHASE ONEPROJECT MANAGEMENT PLANNING MODEL: PHASE TWOPROJECT MANAGEMENT PLANNING MODEL: PHASE THREEPROJECT MANAGEMENT PLANNING MODEL: PHASE FOURPROJECT MANAGEMENT PLANNING MODEL: FINALSUMMARYNOTES
INTRODUCTIONRISK FOCUS MODEL: PHASE ONERISK FOCUS MODEL: PHASE TWORISK FOCUS MODEL: PHASE THREERISK FOCUS MODEL: PHASE FOURRISK FOCUS MODEL: FINALSUMMARYNOTES
INTRODUCTIONHOLISTIC RISK-BASED AUDIT PLANNING MODEL: PHASE ONEHOLISTIC RISK-BASED AUDIT PLANNING MODEL: PHASE TWOHOLISTIC RISK-BASED AUDIT PLANNING MODEL: PHASE THREEHOLISTIC RISK-BASED AUDIT PLANNING MODEL: PHASE FOURHOLISTIC RISK-BASED AUDIT PLANNING MODEL: FINALSUMMARYNOTES
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Content preview from Audit Planning: A Risk-Based Approach

4 THE ANNUAL AUDIT PLAN

The chief audit executive should establish risk-based plans to determine the design of the internal audit priorities of the internal audit activity, consistent with the organization's goals.

—IIA Standard 2010

INTRODUCTION

We arrive now at the all-important annual audit plan. This plan should be designed to ensure discharge of the internal audit's responsibilities, which include:

Improving and assuring governance, risk management, and internal controls.
Promoting self-assessment of internal control.
Coordinating audit activities with the external auditor.
Promoting good information systems, compliance with procedures, value for money, and safeguarding assets and interests.
Forming a view of the corporate attestations on internal control.

Audit planning conjures up several key questions as described by Paul Sobel:

When conducting the annual audit-planning process, the auditor must answer the following questions:

What represents success for the company?
What are the barriers to achieving that success?
How does the company manage those barriers?
How do we know the barriers are managed to the desired level?¹

In quoted companies, the auditor will want to consider Section 404 attestations and will want the audit plan to cover items such as the need to ensure that: