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Audit Planning And The Audit

Decent Essays

Audit planning is a process that entails designing a road map to be followed when conducting an audit. It also extends to identifying the specific guidelines to be adhered to direct the audit direction in the most professionally way. It can be established that are various guidelines that guide the audit depending on whether it is internal or external. Notably, external audit is guided by various standards, which require financial information to be prepared in a specific way as stipulated by various standard setting bodies. Therefore, in audit planning each body has distinct guidelines to be followed in accordance to the jurisdiction’s accepted accounting principles. An analysis of three audit-planning standards: AICPA (American Institute of Certified Public Accountants), PCAOB (Public Company Accounting Oversight Board) and IAASB (International Auditing and Assurance Standards Board)reveals characteristic similarities and differences, which have an overall impact on the performance of the audit. Audit planning is carried in accordance with the guidelines of the specific accounting body. Therefore, in doing so, the Auditor need to identify the jurisdiction under which a firm falls under to establish which standards to adopt. According to PCAOB, an audit planning should be done in accordance to PCAOB standards (Auditing Standard No. 9). Furthermore, the standard also expressly defines the how the overall audit plan should be done and the risk assessment guidelines to be

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