Explain the concepts of Planning the work
- Determine scope and objective of the audit (to verify assets, to check adequacy of internal controls etc...).
- Ensuring appropriate attention is devoted to different areas of the audit (risk based audit).
- Changes in business environment (changes in key personnel, new systems,competitor's reactions, consumer preferences, innovations in the market, board decisions, legislation etc...)
- Consider external auditors work already done.
- Review previous accounts, internal audit reports and past testing (analytical review and previous problems highlighted).
- Ensuring that potential problems are identified.
- Facilitating review.
- Ensure audit work is assigned and co-ordinated properly (select team, book hotels, brief, communicate and allocate work schedules).
- Economic service within an appropriate time scale.