audit-planning

Vocabulary Word

Definition

Audit planning is a step by step strategy created by auditors. It involves figuring out what they need to look at, and how they will do it when reviewing a company's financial records.

Examples in Different Contexts

In resource allocation, 'audit planning' is critical for ensuring that adequate personnel and tools are available for the audit. An audit team leader might state, 'Through careful audit planning, we ensure that we have the right mix of expertise and tools for each audit engagement.'

Practice Scenarios

Academics

Scenario:

In today's lecture, we will be discussing different factors that influence the direction of an audit. First, we will start with the importance of materiality and risk assessments.

Response:

That is interesting, professor. So, in audit planning, we need to consider these factors to ensure a comprehensive and thorough examination, right?

Business

Scenario:

I've been reviewing the reports from last year's audit, and I think our focus should be on the areas where we found discrepancies.

Response:

Agreed. Therefore, our audit planning should focus on these areas to further investigate the causes of these discrepancies.