QUESTION ONE

Audit planning process allows the audit senior to acquire adequate knowledge about the entity. This process ensures an effective control and review of audit work.

Required

1. Explain the auditor’s planning process when planning for an audit of a new client. (8 marks)
2. How does audit planning assist in the conduct of an audit? (5 marks)
3. Explain the following controlling procedures in a well planned audit:
4. Direction and supervision of work (2 marks)
5. Review and co-coordinating of work (2 marks)
6. Quality controls (3 marks)

QUESTION TWO

What should be included in an audit-planning memorandum?