Wiley Practitioner's Guide to GAAS 2023, 2nd Edition

9AU-C 300 Planning an Audit

• Technical Alert
• Scope
• Objectives of AU-C 300
• Requirements
  • Preliminary Engagement Activities
  • Documentation
  • Matters to Consider in Developing an Audit Strategy

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 ...