9AU-C 300 Planning an Audit
TECHNICAL ALERT
Recently issued SAS 146 affects AU-C 300. The preface to this volume contains an overview of the SAS, and relevant changes are noted in this chapter.
SCOPE
AU-C 300 provides guidance on planning a recurring audit of financial statements and also addresses initial audit engagement planning. Guidance for planning audits of group financial statements can be found in AU-C 600. (AU-C 300.01)
OBJECTIVES OF AU-C 300
The objective of the auditor is to plan the audit so that it will be performed in an effective manner.
(AU-C Section 300.04)
REQUIREMENTS
PRELIMINARY ENGAGEMENT ACTIVITIES
It's important for the engagement partner and other key members of the engagement team to be involved in planning the audit. (AU-C 300.05) The auditor should perform the following activities at the beginning of the current audit engagement:
- Perform procedures regarding the acceptance and continuance of the client relationship and the audit engagement. (AU-C 220)1
- Evaluate the auditor's compliance with ethical requirements, including independence. (AU-C 220)2
- Establish the terms of the engagement. (AU-C 210)
(AU-C 300.06)
The purpose of performing these preliminary engagement activities is to consider any events or circumstances that either may adversely affect the auditor's ability to ...