home Preparation Planning an audit of financial statements in accordance with international auditing standards. Planning an audit of financial statements in accordance with international auditing standards Planning an MSA 300 audit on the example of an organization

Planning an audit of financial statements in accordance with international auditing standards. Planning an audit of financial statements in accordance with international auditing standards Planning an MSA 300 audit on the example of an organization

International Standard on Auditing (ISA) 300, Planning an Audit of Financial Statements, should be read in conjunction with ISA 200, General Objectives of the Independent Auditor and Conducting an Audit in Accordance with International Standards on Auditing.

Introduction

Scope of this ISA

1. This International Standard on Auditing (ISA) deals with the auditor's responsibilities in planning an audit of financial statements. This ISA deals with repeat audit engagements. Separately, additional comments are provided related to the first-time audit engagement.

The role and timing of planning

2. Planning an audit involves developing an overall audit strategy for the engagement and drawing up an audit plan. Proper planning is useful in an audit of financial statements because (see paragraphs A1 - A3):

helps the auditor to pay due attention to important aspects of the audit;

helps the auditor to identify and eliminate possible problems in a timely manner;

helps the auditor to properly organize and manage the audit engagement in such a way as to ensure its effective execution;

assists in the selection of audit team members with the appropriate skills and qualifications to reduce anticipated risks, as well as in the distribution of work among them;

contributes to the management and control of the members of the audit team, as well as the analysis of the results of their work;

where appropriate, assists in coordinating the work of the auditors of the organization's components and experts.

Effective date

3. This ISA is effective for audits of financial statements for periods beginning on or after December 15, 2009. *

Target

4. The objective of the auditor is to plan the audit in such a way that it will be carried out effectively.

Requirements

Participation of key members of the audit team

5. The engagement leader and other key engagement team members should be involved in planning the audit, including scheduling and participating in discussions among the engagement team members (see paragraph A4).

Preliminary work on the assignment

6. At the beginning of the audit engagement, the following actions should be taken:

(a) Perform the procedures required by ISA 220 in relation to the continuation of the client relationship and this audit engagement;

ISA 220, Quality Control in an Audit of Financial Statements, paragraphs 12-13.

(b) assess compliance with relevant ethical requirements, including independence, in accordance with HKSA 220;

ISA 220, paragraphs 9-11.

ISA 210, Agreeing the Terms of Audit Engagements - paragraphs 9-13.

Planning works

7. The auditor should develop an overall audit strategy that reflects the scope, timing and focus of the audit, and is the basis for developing the audit plan.

8. In developing an overall audit strategy, the auditor should:

(a) Identify features of the audit engagement that are critical to the scope of the engagement;

(b) confirm the objectives of the engagement reporting to plan the timing of the audit and the nature of the communications needed;

(c) Analyze factors that, in the auditor's judgment, are significant in determining the direction of the engagement team.

(d) examine the results of the preliminary work on the audit engagement and, if appropriate, determine whether the engagement leader's previous experience in performing other engagements on behalf of the organization would be useful in the engagement.

(e) establish the nature, timing and extent of resources required to conduct the audit (see paragraphs A8 - A11).

9. The auditor should develop an audit plan that describes:

(a) the nature, timing and extent of the planned risk assessment procedures, as required by ISA 315 (Revised);

ISA 315 (Revised), "Identifying and Assessing the Risks of Material Misstatement by Studying the Entity and Its Environment."

(b) the nature, timing and extent of planned subsequent audit procedures at the assertion level, as defined in ISA 330;

ISA 330, Audit Procedures Responsive to Assessed Risks.

(c) other planned audit procedures required to be performed in order for the audit engagement to comply with the requirements of the Australian Auditing Standards (see paragraph A12).

10. During the course of the audit, the auditor should make changes to the overall audit strategy and plan as necessary (see paragraph A13).

11. The auditor shall plan the nature, timing and extent of the work to direct and monitor the engagement team members and to verify the results of their work (see paragraphs A14 - A15).

Documentation

12. The auditor should include in the audit documentation:

ISA 230 Audit Documentation - paragraphs 8-11 and A6.

(a) the overall audit strategy;

(b) the plan for the audit to be performed;

(c) any significant changes made during the audit to the overall audit strategy or audit plan and the reasons for those changes (see paragraphs A16 - A19).

Additional Considerations for First-Time Audit Engagements

13. Before starting a first-time audit, the auditor should:

(a) Perform the procedures required by ISA 220 in relation to the acceptance of the client relationship and this audit engagement;

ISA 220, paragraphs 12-13.

(b) if there has been a change of auditor, in compliance with relevant ethical requirements, communicate with the predecessor auditor (see paragraph A20).

Application guidance and other explanatory material

Planning Role and Timing (Ref: Para. 2)

A1. The nature and extent of the planning work will vary depending on the size and complexity of the entity being audited, on the prior experience of key members of the engagement team with the entity, and changes in circumstances that arise during the course of the audit.

A2. Planning is not a separate stage of the audit, but rather is continuous and cyclical and in many cases begins immediately upon completion (or in connection with the completion) of the previous audit engagement and continues until the current audit engagement. Planning involves an analysis of the timing of specific activities and audit procedures that must be completed before proceeding with subsequent audit procedures. For example, planning includes the need to consider issues such as before the auditor identifies and evaluates the risks of material misstatement:

list of analytical procedures to be performed as risk assessment procedures;

obtaining a general idea of the regulatory legal acts related to the activities of the organization, and how the organization fulfills the requirements of these acts;

the procedure for determining materiality;

expediency of attracting experts;

the procedure for performing other risk assessment procedures.

A3. In order to facilitate the execution and control of the audit engagement (for example, to coordinate the performance of certain audit procedures with the work of the organization's personnel), the auditor may decide to discuss certain aspects of planning with the organization's management. Although such discussions take place in many cases, it remains the responsibility of the auditor to develop an overall audit strategy and plan for the audit to be conducted. When discussing matters related to the overall audit strategy or audit plan, care should be taken not to compromise their effectiveness. For example, discussing with management the nature and timing of the audit procedures may jeopardize the effectiveness of the audit by making the audit procedures too predictable.

Participation of Key Members of the Engagement Team (Ref: Para. 5)

A4. The engagement of the engagement leader and other key engagement team members in planning the audit involves leveraging their experience and understanding of the issues, which leads to an increase in the effectiveness and efficiency of the planning process.

ISA 315 (Revised), paragraph 10, paragraph 15 of ISA 240, The Auditor's Responsibilities Relating to Fraud in an Audit of Financial Statements, recommends that This discussion focuses on the exposure of the entity's financial statements to material misstatement due to fraud.

Preliminary Engagement Work (Ref: Para. 6)

A5. Performing all the preliminary work described in paragraph 6 at the start of the current audit engagement helps the auditor to identify and evaluate events or circumstances that could adversely affect his ability to plan and perform the audit engagement.

A6. Performing these preliminary activities on the audit engagement allows the auditor to plan the engagement in such a way that in the course of its execution:

the auditor maintains independence and ability to carry out the audit engagement;

there would be no management integrity issues that could adversely affect the auditor's willingness to continue with the engagement.

there would be no misunderstandings with the client about the terms of the audit engagement.

A7. The auditor's review of the continued relationship with the client and compliance with relevant ethical requirements, including independence, is conducted throughout the engagement as new conditions or circumstances change. The initial procedures for both the continuation of the relationship with the client and the assessment of compliance with relevant ethical requirements (including independence) at the very beginning of the current audit engagement means that they are completed before the other significant work on the current audit engagement is completed. In cases of recurring audit engagements, these initial procedures are usually performed immediately upon completion (or in connection with the completion) of the previous audit engagement.

Planning works

Overall Audit Strategy (Ref: Para. 7 - 8)

A8. Provided that audit risk assessment procedures are followed, the overall audit strategy process helps the auditor to achieve certainty on matters such as:

the resources required to carry out work in specific areas of the audit, for example, using suitably qualified members of the audit team to work in high-risk areas, or using experts to solve complex issues;

allocation of resources to specific audit areas, for example, the number of audit team members dedicated to taking inventory of large stocks at their locations, the amount of review by other auditors in the case of a team audit, or the number of hours dedicated to high-profile areas level of risk;

When available resources should be used: for example, during the mid-term audit phase or at key key dates;

How resources are managed, allocated and monitored: for example, when should meetings be held to brief and hear members of the engagement team, how the engagement and manager reviews will be organized (e.g. in the workplace or remotely), should perform review checks on the quality of the assignment.

A9. The Appendix lists examples of comments related to the development of an overall audit strategy.

A10. Once the overall audit strategy is complete, you can move on to developing an audit plan that addresses the issues identified in the overall audit strategy, taking into account the need to achieve the audit objectives by making effective use of the auditor's available resources. The development of an overall audit strategy and a detailed audit plan are not necessarily separate or sequential steps, on the contrary, they are closely related, since changes in one of these documents may lead to the need to make corresponding changes to the other.

Features of small organizations

A11. When auditing small organizations, the entire audit may be performed by a very small audit team. In many cases, small entities are audited by the engagement partner (who may be an individual practitioner) with only one engagement team member (or no engagement team members at all). In the context of a small audit team, it is easier to coordinate the joint work of its members and organize information interaction between them. Developing an overall audit strategy for an ongoing audit of a small organization should not be difficult or time-consuming; it depends on the size of the organization, the complexity of the audit, and the size of the audit team. For example, a brief post-audit memorandum based on a review of working papers and highlighting issues identified in a just-concluded audit that has been updated already in the current period following discussions with the owner-manager can serve as an appropriately documented strategy. audit of a current audit engagement, if the memorandum discloses the matters listed in paragraph 8.

Audit Plan (Ref: Para. 9)

A12. The audit plan is more detailed than the overall strategy because it specifies the nature, timing and extent of audit procedures performed by the audit team members. Planning for these audit procedures is carried out throughout the audit as its plan is developed. For example, planning audit risk assessment procedures is carried out at the initial stage of the audit. However, planning the nature, timing and extent of any subsequent audit procedures depends on the outcome of these risk assessment procedures. In addition, the auditor may initiate subsequent audit procedures for evaluating certain types of transactions, account balances and disclosures before planning any other subsequent audit procedures.

Changes to Planning Decisions During the Audit (Ref: Para. 10)

A13. As a result of unforeseen events, changes in circumstances, or as a result of obtaining audit evidence obtained during the course of audit procedures, it may be necessary for the auditor to make changes to the overall audit strategy and audit plan, which would entail a change in the nature, timing and extent of subsequent audit procedures from taking into account the revised analysis of assessed risks. This may be the case when the auditor obtains information materially different from that which was available in the original planning of the relevant audit procedures. For example, audit evidence obtained through substantive procedures may conflict with audit evidence obtained from testing controls.

Direction, Control and Review (Ref: Para. 11)

A14. The nature, timing and extent of directing and overseeing the engagement team members and reviewing the work they perform will vary and depend on many factors, including the following:

the size and complexity of the organization;

audit area;

The assessed risks of material misstatement (for example, an increase in the assessed risk of material misstatement for a given audit area usually requires a corresponding increase in the scope and timeliness of leadership and control over the members of the engagement team, as well as more detailed examination of their work);

the abilities and level of training of the members of the audit team performing the audit engagement.

ISA 220, paragraphs 15-17.

Features of small organizations

A15. If the audit is carried out exclusively by the engagement partner, then the issues of organizing leadership and control over the members of the engagement team do not arise. In such cases, the task manager, having independently completed all the procedures, is aware of all significant problems. When the same person conducts the entire audit, they may subsequently encounter practical problems in reaching an objective opinion on the appropriateness of the judgments made during the audit. If particularly complex or unusual issues are involved and the audit is conducted by an individual practitioner, it may be advisable to consult with other suitably qualified auditors or with a professional audit firm.

Documentation (Ref: Para. 12)

A16. The overall audit strategy documentation is a record of key decisions that are considered necessary to properly plan the audit and communicate significant matters to the engagement team. For example, the auditor may summarize the overall audit strategy in the form of a memorandum that contains key decisions on the overall scope, timing, and procedure of the audit.

A17. Audit plan documentation is a record of the planned nature, timing and extent of risk assessment procedures and subsequent audit procedures at the assertion level in response to assessed risks. Documentation also serves as evidence of proper planning of audit procedures, which can be reviewed and approved prior to performing these procedures. The auditor may use standard audit programs or checklists tailored to the specific circumstances of the audit engagement.

A18. Documenting significant changes in the overall audit strategy and audit plan, as well as the resulting changes in the planned nature, timing and extent of audit procedures, explains the reasons for these significant changes, and the overall audit strategy and audit plan were finalized for conducted audit. The documents also reflect the appropriate response to significant changes occurring during the audit.

Features of small organizations

A19. As noted in paragraph A11, an appropriate brief memorandum can serve as a documentary of the audit strategy of a small organization. In developing the audit plan, standard audit programs or checklists (see paragraph A17) may be used, based on the assumption that there are few appropriate controls, which are likely to occur in a small organization, provided that such programs or checklists are used with taking into account the specific circumstances of the audit engagement, including the auditor's assessment of risks.

Additional Considerations for First-Time Audit Engagements (Ref: Para. 13)

A20. The purpose and purpose of planning the audit to be conducted remains unchanged for both a first-time audit engagement and a regular audit. However, when planning a first-time audit engagement, the auditor may find it necessary to expand the list of planning activities, since he does not have past experience with the auditee, which he could use when planning an audit that is conducted regularly. In developing the overall audit strategy and first-time audit plan, the auditor may consider some additional issues, including the following:

Agreements that need to be reached with the predecessor auditor, for example, to make it possible to review his working papers, except where prohibited by law or regulation;

all matters of principle (including the application of accounting principles or auditing and financial reporting standards) discussed with management in connection with the initial appointment of the auditor, bringing these matters to the attention of those charged with governance, and the impact of these matters on the overall audit strategy and audit plan ;

The audit procedures necessary to obtain sufficient appropriate audit evidence about the opening balances.

ISA 510, First-time Audit Engagements: Opening Balances.

other procedures required by the firm's quality control system for first-time audit engagements (for example, the firm's quality control system may involve another partner or senior officer in reviewing the overall audit strategy prior to significant audit procedures or reviewing reports prior to issue) ...

Application
(Ref: Para. 7-8, A8-A11)

Considerations for developing an overall audit strategy

This Appendix provides examples of matters that the auditor might consider in developing an overall audit strategy. Many of these issues will affect the detailed audit plan. The examples provided cover a wide range of issues that are applicable to many audit engagements. While some of the questions below may be included in the requirements of other ISAs, not all of these questions remain relevant for every audit engagement, and the list is not necessarily exhaustive.

Features of the audit assignment:

The financial reporting framework on the basis of which the financial information to be audited was prepared, taking into account the possible need for verification of compliance with any other financial reporting framework;

industry-specific reporting requirements, such as reports mandated by industry regulators;

the intended scope of the audit, including the number and location of the audited components of the organization;

The nature of the control relationship between the parent and its components that determines how the group is consolidated.

the scope of the audit of the components of the organization performed by third-party auditors;

the nature of the business segments to be audited, including the need for expertise;

the reporting currency used, including the need to translate the audited financial information from one currency to another;

the need for statutory audits of individual financial statements in addition to audits for consolidation purposes;

the presence of an internal audit service in the organization and, if any, taking into account in what areas and to what extent the results of the work of this service can be used for the purposes of the audit, when the nature and scope of the planned use of the work of internal auditors allows direct participation;

The entity's use of the services of service organizations and, if such services are used, an account of how the auditor can obtain evidence about the organization or operation of controls used by those service organizations.

The intended use of audit evidence gathered in previous audit engagements, for example, evidence related to risk assessment procedures and testing of controls.

the actual impact of information technology on audit procedures, including the availability of data and the expected use of automated audit techniques;

reconciling the intended scope and timing of the audit with the reviews of interim financial information, and the impact of the information obtained from such reviews on the audit;

availability of personnel and customer data.

Reporting objectives, audit timing and nature of communication:

the reporting calendar of the organization, for example, in the interim and final stages;

organizing meetings with management and those charged with governance to discuss the nature, timing and extent of the audit work;

Discussion with management and those charged with governance about the intended types of reports and their timing, and other communications, both written and oral, including the auditor's report, letters from management, and communications with those charged with governance. control;

Discussing with management the expected communication of audit progress throughout the engagement.

Discussion with the auditors of the organization's components of issues related to the expected types and timing of reports to be provided, as well as other issues related to the audit of the components;

The expected nature and timing of communication between the engagement team members, including the nature and timing of team meetings and the timing of the review of the work performed;

the need for communication with third parties, including any statutory or contractual reporting obligations arising from the audit.

Significant factors, preliminary work on the assignment and information obtained in the course of completing other assignments:

the procedure for determining materiality in accordance with ISA 320 and, where applicable:

ISA 320, Materiality in Planning and Performing an Audit.

the procedure for determining materiality for the components of the organization and communicating this information to the auditors of the components in accordance with ISA 600;

ISA 600, Special Considerations - Audits of Group Financial Statements (Including the Work of Component Auditors) - paragraphs 21-23 and 40 (c).

preliminary identification of significant components and material classes of transactions, account balances and disclosures;

preliminary identification of areas where the risk of material misstatement is possible;

the impact of the assessed risk of material misstatement across the financial statements on management, supervision and review;

The way in which the auditor draws the attention of the audit team members to the need to question and follow the principle of professional skepticism in collecting and evaluating audit evidence;

the results of the previous audit, during which the operational efficiency of the internal control system was assessed, including the nature of the deficiencies identified and the measures taken to eliminate them;

discussion of issues that may affect the conduct of the audit with the staff of the audit organization responsible for providing other services to the audited organization;

Evidence of management's commitment to the design, implementation and maintenance of a sound internal control system, including evidence that adequate documentation is available for such a system;

the volume of transactions that can play a decisive role in the auditor's decision about whether it would be more effective to rely on internal control;

organization-wide awareness of the importance of the internal control system for the successful conduct of the organization's operational activities;

significant business events affecting the organization, including changes in information technology and business processes, changes in key management of the organization, as well as acquisitions, mergers and acquisitions;

significant developments in the development of the industry, such as changes in the requirements of industry regulations and new requirements for reporting;

significant changes in the financial reporting framework, such as changes in financial reporting standards;

other significant changes affecting the organization, such as changes in the regulatory framework.

Nature, terms of use and amount of resources:

Selecting and assigning responsibilities to the engagement team (including, where applicable, the engagement quality reviewer), including assigning more experienced engagement team members to areas with a higher risk of material misstatement.

In the internal control system "; ISA 300, Planning an Audit of Financial Statements ...

The Ministry of Finance told what has changed in 19 documents of the ISA, newly introduced in the Russian Federation
Those in Charge of Corporate Governance ISA 300 Planning an Audit of Financial Statements ...

Date of publication: 14.02.2019

Date of change: 14.02.2019

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IFAC HANDBOOK10MSA 300 INTERNATIONAL? ONE STANDARD? T AUDIT 300 "PLAN? FINANCIAL STATEMENT AUDITING "International Standard on Auditing (ISA) 300" Planning an Audit of Financial Statements "should be read in conjunction with ISA 200," Principal Objectives of the Independent Auditor and Conducting an Audit in Accordance with International Standards on Auditing. " Introduction Scope of this HKSA This International Standard on Auditing (ISA) deals with the auditor's responsibilities in planning an audit of financial statements. This ISA deals with repeat audit engagements. Separately, additional comments are provided related to the first-time audit engagement. ? Role and timing of planning 2.? ? ? ? ? ? ? ? ? ? ? ? ? Audit planning involves developing an overall engagement audit strategy and drawing up an audit plan. Proper planning is useful in an audit of financial statements because (see paragraphs A1 – A3): Helps the auditor pay due attention to important aspects of the audit; helps the auditor to identify and eliminate possible problems in a timely manner; helps the auditor to properly organize the audit engagement and manage the audit engagement process in such a way as to ensure its effective implementation; assists in the selection of audit team members with the appropriate skills and qualifications to reduce anticipated risks, as well as in the distribution of work among them; facilitates the direction and control of the audit team members, as well as the analysis of their results; where this is the case, assists in the coordination of the work of the auditors of the organization's components and experts. Effective Date 3.? ? ? ? ? ? ? ? ? ? ? ? ? This ISA is effective for audits of financial statements for periods beginning on or after December 15, 2009. * Objective 4.? ? ? ? ? ? ? ? ? ? ? ? ? The objective of the auditor is to plan the audit in such a way that it is effective. Requirements Involvement of key members of the engagement team 5.? ? ? ? ? ? ? ? ? ? ? ? ? ? The engagement leader and other key engagement team members should be involved in planning the audit, including scheduling and participating in discussions among the engagement team (Ref: Para. A4). ? ? ? ? ? ? ? ? ? ? ? ? At the commencement of the audit engagement, the auditor shall take the following actions: (a) Perform the procedures required by ISA 220 in relation to the continuation of the client relationship and the audit engagement; (b) assess compliance with relevant ethical requirements, including independence, in accordance with ISA 220; (c) Obtaining an understanding of the terms of the audit engagement, as required by ISA 210. (Ref: Para. A5 – A7). ? planning work 7.? ? ? ? ? ? ? ? ? ? ? ? ? The auditor should develop an overall audit strategy that reflects the scope, timing and focus of the audit, and is the basis for developing the audit plan. ? ? ? ? ? ? ? ? ? ? ? ? In developing an overall audit strategy, the auditor should: (a)? ? ? ? ? ? ? ? ? ? ? ? ? Identify features of the audit engagement that are critical to the scope of the engagement; (b)? ? ? ? ? ? ? ? ? ? ? ? ? Confirm the objectives of the engagement reporting to plan the timing of the audit and the nature of the communications needed; (c)? ? ? ? ? ? ? ? ? ? ? ? ? Analyze the factors that, in the auditor's judgment, are significant in determining the direction of the engagement team; (d)? ? ? ? ? ? ? ? ? ? ? ? ? Review the results of preliminary work on the audit engagement and, if appropriate, determine whether the engagement leader's previous experience in performing other engagements on behalf of the organization would be useful in completing the engagement; (e)? ? ? ? ? ? ? ? ? ? ? ? ? Establish the nature, timing and extent of resources required to conduct the audit (see paragraphs A8 – A11). nine.? ? ? ? ? ? ? ? ? ? ? ? ? The auditor should develop an audit plan that describes: (a)? ? ? ? ? ? ? ? ? ? ? ? ? the nature, timing and extent of the planned risk assessment procedures as required by ISA 315 (Revised); (b)? ? ? ? ? ? ? ? ? ? ? ? ? The nature, timing and extent of planned subsequent audit procedures at the assertion level, as defined in ISA 330; (c)? ? ? ? ? ? ? ? ? ? ? ? ? other planned audit procedures required to be performed in order for the audit engagement to comply with the ISAs (see paragraph A12) ? ? ? ? ? ? ? ? ? ? ? ? During the course of the audit, the auditor should make changes to the overall audit strategy and plan as necessary (see paragraph A13). eleven.? ? ? ? ? ? ? ? ? ? ? ? ? The auditor should plan for the nature, timing and extent of the work to direct, monitor, and verify the results of the engagement team members. (Ref: Para. A14 – A15) Documentation 12.? ? ? ? ? ? ? ? ? ? ? ? ? The auditor should include in audit documentation: (a) an overall audit strategy; (b) a plan for the audit to be performed; (c) any significant changes made during the audit to the overall audit strategy or audit plan and the reasons for those changes. (Ref: Para. A16-A19) Additional Considerations for First-Time Audit Engagements 13.? ? ? ? ? ? ? ? ? ? ? ? ? Before starting a first-time audit, the auditor should do the following: (a)? ? ? ? ? ? ? ? ? ? ? ? ? Perform the procedures required by ISA 220 in relation to the acceptance of the client relationship and this audit engagement; (b)? ? ? ? ? ? ? ? ? ? ? ? ? In compliance with relevant ethical requirements, communicate with the predecessor auditor if there has been a change of auditor (see paragraph A20). ***? application manual and other explanatory material? Planning role and timing (see point 2) A1.? ? ? ? ? ? ? ? ? ? ? ? ? The nature and extent of the planning work will vary depending on the size and complexity of the entity being audited, on the prior experience of key members of the engagement team with the entity, and changes in circumstances that arise during the course of the audit. A2.? ? ? ? ? ? ? ? ? ? ? ? ? Planning is not a separate stage of the audit, but rather is continuous and cyclical and in many cases begins immediately upon completion (or in connection with the completion) of the previous audit engagement and continues until the current audit engagement. Planning involves an analysis of the timing of specific activities and audit procedures that must be completed before proceeding with subsequent audit procedures. For example, planning includes the need to consider issues such as the list of analytical procedures to be performed as risk assessment procedures before the auditor identifies and evaluates the risks of material misstatement; obtaining a general idea of the regulatory legal acts related to the activities of the organization, and how the organization fulfills the requirements of these acts; the procedure for determining materiality; the advisability of involving experts; the procedure for performing other risk assessment procedures. A3.? ? ? ? ? ? ? ? ? ? ? ? ? In order to facilitate the execution and control of the audit engagement (for example, to coordinate the performance of certain audit procedures with the work of the organization's personnel), the auditor may decide to discuss certain aspects of planning with the organization's management. Although such discussions take place in many cases, it remains the responsibility of the auditor to develop an overall audit strategy and plan for the audit to be conducted. When discussing matters related to the overall audit strategy or audit plan, care should be taken not to compromise their effectiveness. For example, a discussion with management about the nature and timing of the audit procedures may jeopardize the effectiveness of the audit by making the audit procedures too predictable. Involvement of key members of the engagement team (Ref: Para. 5) A4.? ? ? ? ? ? ? ? ? ? ? ? ? The engagement of the engagement leader and other key engagement team members in planning the audit involves leveraging their experience and understanding of the issues, which leads to an increase in the effectiveness and efficiency of the planning process. Preliminary Engagement Work (Ref: Para. 6) A5.? ? ? ? ? ? ? ? ? ? ? ? ? Performing all the preliminary work described in paragraph 6 at the start of the current audit engagement helps the auditor to identify and evaluate events or circumstances that could adversely affect his ability to plan and perform the audit engagement. A6.? ? ? ? ? ? ? ? ? ? ? ? ? Performing these preliminary work on the audit engagement allows the auditor to plan the engagement in such a way that during its execution: the auditor maintains independence and ability to carry out the audit engagement; there would be no management integrity issues that could negatively affect the auditor's desire to continue with the engagement; not there would be a misunderstanding with the client about the terms of the audit engagement. A7.? ? ? ? ? ? ? ? ? ? ? ? ? The auditor's review of the continued relationship with the client and compliance with relevant ethical requirements, including independence, is conducted throughout the engagement as new conditions or circumstances change. The initial procedures for both the continuation of the relationship with the client and the assessment of compliance with relevant ethical requirements (including independence) at the very beginning of the current audit engagement means that they are completed before the other significant work on the current audit engagement is completed. In cases of recurring audit engagements, these initial procedures are usually performed immediately upon completion (or in connection with the completion) of the previous audit engagement.? Planning Activities Overall Audit Strategy (Ref: Para. 7-8) A8.? ? ? ? ? ? ? ? ? ? ? ? ? Subject to the implementation of audit risk assessment procedures, the overall audit strategy process helps the auditor to achieve certainty about: the resources needed to carry out work in certain areas of the audit, for example, the use of suitably qualified members of the audit team to work with areas characterized by a high level of risk, or the involvement of experts in solving complex issues; allocation of resources to specific areas of the audit, for example, the number of audit team members dedicated to inventory large quantities of inventory in? where they are located, the extent to which other auditors are audited in the event of a group audit, or the number of hours allocated to high-risk areas; When available resources should be used: for example, during the mid-term audit phase or at key key dates; How resources are managed, allocated and monitored: for example, when should meetings be held to brief and hear members of the engagement team, how the engagement and manager reviews will be organized (for example, in the workplace or remotely), should Perform engagement quality reviews A9.? ? ? ? ? ? ? ? ? ? ? ? ? The appendix lists examples of comments related to the development of an overall audit strategy. A10.? ? ? ? ? ? ? ? ? ? ? ? ? Once the overall audit strategy is complete, you can move on to developing an audit plan that addresses the issues identified in the overall audit strategy, taking into account the need to achieve the audit objectives by making effective use of the auditor's available resources. ? The development of a general audit strategy and a detailed audit plan are not necessarily separate or sequential steps, on the contrary, they are closely interrelated, since changes in one of these documents may lead to the need to make corresponding changes in the other. Features of small organizations A11.? ? ? ? ? ? ? ? ? ? ? ? ? When auditing small organizations, the entire audit may be performed by a very small audit team. In many cases, small entities are audited by the engagement partner (who may be an individual practitioner) with only one engagement team member (or no engagement team members at all). In the context of a small audit team, it is easier to coordinate the joint work of its members and organize information interaction between them. ? Developing an overall audit strategy for the audit of a small organization should not become complex or time-consuming; it depends on the size of the organization, the complexity of the audit, and the size of the audit team. For example, a brief post-audit memorandum based on a review of working papers and highlighting issues identified in a just-concluded audit that has been updated already in the current period following discussions with the owner-manager can serve as an appropriately documented strategy. audit of a current audit engagement, if the memorandum discloses the matters listed in paragraph 8. Audit Plan (Ref: Para. 9) A12.? ? ? ? ? ? ? ? ? ? ? ? ? The audit plan is more detailed than the overall strategy because it specifies the nature, timing and extent of audit procedures performed by the audit team members. Planning for these audit procedures is carried out throughout the audit as its plan is developed. For example, planning audit risk assessment procedures is carried out at the initial stage of the audit. However, planning the nature, timing and extent of any subsequent audit procedures depends on the outcome of these risk assessment procedures. In addition, the auditor may initiate subsequent audit procedures for evaluating certain types of transactions, account balances and disclosures before planning any other subsequent audit procedures. Changes to Planning Decisions During the Audit (Ref: Para. 10) A13.? ? ? ? ? ? ? ? ? ? ? ? ? As a result of unforeseen events, changes in circumstances, or as a result of obtaining audit evidence obtained during the course of audit procedures, it may be necessary for the auditor to make changes to the overall audit strategy and audit plan, which would entail a change in the nature, timing and extent of subsequent audit procedures from taking into account the revised analysis of assessed risks. This may be the case when the auditor obtains information materially different from that which was available in the original planning of the relevant audit procedures. For example, audit evidence obtained through substantive procedures may conflict with audit evidence obtained from testing controls. ? Guidance, Supervision and Review (Ref: Para. 11) A14.? ? ? ? ? ? ? ? ? ? ? ? ? The nature, timing and extent of directing and controlling the engagement team members and reviewing the work they perform will vary and depend on many factors, including: the size and complexity of the entity; the scope of the audit; and the assessed risks of material misstatement (for example, an increase in the assessed risk of material misstatement). for this audit area usually requires a corresponding expansion of the scope and ensuring the timeliness of the direction and control of the members of the audit team, as well as more detailed examination of their work); the abilities and level of training of the members of the audit team performing the audit engagement. ISA 220 provides additional guidance for directing and overseeing the audit and for reviewing the results of audit work. Considerations for Small Organizations A15.? ? ? ? ? ? ? ? ? ? ? ? ? If the audit is carried out exclusively by the engagement partner, then the issues of organizing leadership and control over the members of the engagement team do not arise. In such cases, the task manager, having independently completed all the procedures, is aware of all significant problems. When the same person conducts the entire audit, they may subsequently encounter practical problems in reaching an objective opinion on the appropriateness of the judgments made during the audit. If particularly complex or unusual issues are involved and the audit is performed by an individual practitioner, it may be prudent to consult with other suitably qualified auditors or a professional auditing firm. Documentation (Ref: Para. 12) A16.? ? ? ? ? ? ? ? ? ? ? ? ? The overall audit strategy documentation is a record of key decisions that are considered necessary to properly plan the audit and communicate significant matters to the engagement team. For example, the auditor may summarize the overall audit strategy in the form of a memorandum that contains key decisions on the scope, timing, and procedure of the audit. A17.? ? ? ? ? ? ? ? ? ? ? ? ? Audit plan documentation is a record of the planned nature, timing and extent of risk assessment procedures and subsequent audit procedures at the assertion level in response to assessed risks. Documentation also serves as evidence of proper planning of audit procedures, which can be reviewed and approved prior to performing these procedures. The auditor may use standard audit programs or checklists tailored to the specific circumstances of the audit engagement. A18.? ? ? ? ? ? ? ? ? ? ? ? ? Documenting significant changes in the overall audit strategy and audit plan, as well as the resulting changes in the planned nature, timing and extent of audit procedures, explains the reasons for these significant changes, and the overall audit strategy and audit plan were finalized for conducted audit. The documents also reflect the appropriate response to significant changes occurring during the audit. Particulars of small organizations A19. ? ? ? ? ? ? ? ? ? ? ? ? ? As noted in paragraph A11, an appropriate brief memorandum can serve as a documentary of the audit strategy of a small organization. In developing the audit plan, standard audit programs or checklists (see paragraph A17) may be used, based on the assumption that there are few appropriate controls, which are likely to occur in a small organization, provided that such programs or checklists are used with Considering the Specific Circumstances of the Audit Engagement, including the Auditor's Assessment of Risks Additional Considerations for First-Time Audit Engagements (Ref: Para. 13) A20.? ? ? ? ? ? ? ? ? ? ? ? ? The purpose and purpose of planning the audit performed remain the same as in a first-time audit engagement? and with an audit carried out regularly. However, when planning a first-time audit engagement, the auditor may find it necessary to expand the list of planning activities, since he does not have past experience with the auditee, which he could use when planning an audit that is conducted regularly. In developing the overall audit strategy and first-time audit plan, the auditor may consider some additional issues, including the following: agreements to be reached with the predecessor auditor, for example, to ensure that his working papers are available, unless prohibited by law. or regulation; any matters of principle (including the application of accounting principles or auditing and financial reporting standards) discussed with management in connection with the initial appointment of the auditor, the communication of these matters to those charged with governance, and the impact of these matters on the overall strategy audit and audit plan; audit procedures necessary to obtain sufficient appropriate audit evidence about opening balances; other procedures required by the firm's quality control system for first-time audit engagements (for example, the firm's quality control system may involve another partner or reviewing the overall audit strategy prior to initiating significant audit procedures or reviewing reports prior to issuance). Appendix (Ref: Para. 7-8, A8-A11) Considerations for Developing an Overall Audit Strategy This Appendix provides examples of matters that the auditor might consider in developing an overall audit strategy. Many of these issues will affect the detailed audit plan. The examples provided cover a wide range of issues that are applicable to many audit engagements. While some of the questions below may be included in the requirements of other ISAs, not all of these questions remain relevant for every audit engagement, and the list is not necessarily exhaustive. Specifics of the audit engagement: the financial reporting framework from which the financial information to be audited was prepared, taking into account the possible need to verify compliance with any other financial reporting framework; industry-specific reporting requirements such as reports mandated by industry regulators the intended scope of the audit, including the number and location of the audited components of the organization; The nature of the control relationship between the parent and its components that determines how the group is consolidated. the scope of the audit of the components of the organization performed by third-party auditors; the nature of the business segments to be audited, including the need for expertise; the reporting currency used, including the need to translate the audited financial information from one currency to another; the need for statutory audits of individual financial statements in addition to audits for consolidation purposes; the presence of an internal audit service in the organization and, if any, taking into account in what areas and to what extent the results of the work of this service can be used for the purposes of the audit, when the nature and scope of the planned use of the work of internal auditors allows direct participation; the entity's use of the services of service organizations and, if such services are used, consideration of how the auditor can obtain evidence about the organization or operation of controls used by those service organizations; the intended use of audit evidence collected in previous audit engagements, for example, evidence related to risk assessment and control testing procedures; the actual impact of information technology on audit procedures, including the availability of data and the expected use of automated audit techniques; reconciling the intended scope and timing of the audit with the reviews of interim financial information, and the impact of the information obtained from such reviews on the audit; availability of personnel and customer data. Reporting objectives, audit timing and communication patterns: the organization's reporting calendar, for example, in the interim and final stages; organizing meetings with management and those charged with governance to discuss the nature, timing and extent of the audit work ;? Discussion with management and those charged with governance about the intended types of reports and their timing, and other communications, both written and oral, including the auditor's report, letters from management, and communications with those charged with governance. managing; discussing with management the expected communication of audit progress throughout the engagement; Discussion with the auditors of the organization's components of issues related to the expected types and timing of reports to be provided, as well as other issues related to the audit of the components; The expected nature and timing of communication between the engagement team members, including the nature and timing of team meetings and the timing of the review of the work performed; the need for communication with third parties, including any statutory or contractual reporting obligations arising from the audit Material factors, preliminary engagement work, and information obtained in the course of other engagements: a procedure for determining materiality in accordance with ISA 320i, where applicable: the procedure for determining materiality for the components of the organization and communicating this information to the auditors of the components in accordance with ISA 600; preliminary identification of significant components and material classes of transactions, account balances and disclosures; preliminary identification of areas in which a possible increased risk of material misstatement; the impact of the assessed risk of material misstatement at the level of the entire financial statements on management, supervision and review; The way in which the auditor draws the attention of the audit team members to the need to question and follow the principle of professional skepticism in collecting and evaluating audit evidence; the results of the previous audit, during which the operational efficiency of the internal control system was assessed, including the nature of the deficiencies identified and the measures taken to eliminate them; discussion of issues that may affect the conduct of the audit with the staff of the audit organization responsible for providing other services to the audited organization; Evidence of management's commitment to the design, implementation and maintenance of a sound internal control system, including evidence that adequate documentation is available for such a system; the volume of transactions that can play a decisive role in the auditor's decision about whether it would be more effective to rely on internal control; an organization-wide awareness of the importance of internal control to the successful conduct of the organization's operations; significant business events affecting the organization, including changes in information technology and business processes, changes in key management of the organization, as well as acquisitions, mergers and acquisitions; significant developments in the development of the industry, such as changes in the requirements of industry regulations and new requirements for reporting; significant changes to the financial reporting framework, such as changes in financial reporting standards; other significant changes affecting the organization, such as changes in the regulatory framework. Nature, timing and extent of resources: Selection of engagement team members (including engagement quality assurance reviewer, where applicable) and assignment of responsibilities, including assigning more experienced engagement team members to areas with a higher level of material risk. misstatement; budgeting of the engagement, including setting the amount of time to devote to activities where there is a higher risk of material misstatement © IFAC? ? ? ? ? ? ? ? ? ? ? ? ? ISA 220, Quality Control in an Audit of Financial Statements - paragraphs 12-13. ? ? ? ? ? ? ? ? ? ? ? ? ? See ASA 220, paragraphs 9-11. ? ? ? ? ? ? ? ? ? ? ? ? ? ISA 210, Agreeing the Terms of Audit Engagements - paragraphs 9-13. ? ? ? ? ? ? ? ? ? ? ? ? ? ISA 315 (Revised), “Identifying and Assessing the Risks of Material Misstatement by Studying the Entity and Its Environment”. ? ? ? ? ? ? ? ? ? ? ? ? ? ISA 330, Audit Procedures Responsive to Assessed Risks. ? ? ? ? ? ? ? ? ? ? ? ? ? ISA 230, Audit Documentation, paragraphs 8-11 and A6. ? ? ? ? ? ? ? ? ? ? ? ? ? See ASA 220, paragraphs 12-13. ? ? ? ? ? ? ? ? ? ? ? ? ? HKSA 315 (Revised), paragraph 10, paragraph 15 of HKSA 240, The Auditor's Responsibilities Relating to Fraud in an Audit of Financial Statements, provides guidance that This discussion focuses on the exposure of the entity's financial statements to material misstatement due to fraud. ? ? ? ? ? ? ? ? ? ? ? ? ? See ASA 220, paragraphs 15-17. ? ? ? ? ? ? ? ? ? ? ? ? ? ISA 510 First-Time Audit Engagements: Opening Balances. ? ? ? ? ? ? ? ? ? ? ? ? ? ISA 320, Materiality in Planning and Performing an Audit. ? ? ? ? ? ? ? ? ? ? ? ? ? ISA 600, Special Considerations - Audits of Group Financial Statements (Including the Work of Component Auditors) - paragraphs 21-23 and 40 (c).

Introduction

Scope of this ISA

This International Standard on Auditing (ISA) deals with the auditor's responsibilities in planning an audit of financial statements. This ISA applies to repeat audit engagements. Separately, additional comments are provided related to the first-time audit engagement.

The role and timing of planning

Audit planning involves developing an overall engagement audit strategy and drawing up an audit plan. Proper planning is useful in an audit of financial statements because (see paragraphs A1 - A3):

helps the auditor to pay due attention to important aspects of the audit;
helps the auditor to identify and eliminate possible problems in a timely manner;
helps the auditor to properly organize and manage the audit engagement in such a way as to ensure its effective execution;
assists in the selection of audit team members with the appropriate skills and qualifications to reduce anticipated risks, as well as in the distribution of work among them;
contributes to the management and control of the members of the audit team, as well as the analysis of the results of their work;
where appropriate, assists in coordinating the work of the auditors of the organization's components and experts.

Effective date

This ISA is effective for audits of financial statements for periods beginning on or after December 15, 2009.

Target

The objective of the auditor is to plan the audit in such a way that it is carried out effectively.

Requirements

Participation of key members of the audit team

The engagement leader and other key members of the engagement team should be involved in planning the audit, including scheduling and participating in discussions among the engagement team members (see paragraph A4).

Preliminary work on the assignment

At the beginning of the audit engagement, the auditor should take the following actions:

Planning works

The auditor should develop an overall audit strategy that reflects the scope, timing and focus of the audit, and is the basis for developing the audit plan.
In developing an overall audit strategy, the auditor should:

(a) Identify features of the audit engagement that are critical to the scope of the engagement;

(b) confirm the objectives of the engagement reporting to plan the timing of the audit and the nature of the communications needed;

(c) Analyze factors that, in the auditor's judgment, are significant in determining the direction of the engagement team.

(e) establish the nature, timing and extent of resources required to conduct the audit (see paragraphs A8 - A11).

The auditor should develop an audit plan that describes:

(a) the nature, timing and extent of the planned risk assessment procedures, as required by ISA 315 (Revised);

(b) the nature, timing and extent of planned further audit procedures at the assertion level, as defined in ISA 330;

(c) other planned audit procedures required for the audit engagement to comply with the requirements of the ISAs (see paragraphs A12 - A14).

During the course of the audit, the auditor should make changes to the overall audit strategy and plan as necessary (see paragraph A15).
The auditor shall plan for the nature, timing and extent of the work to direct and control the members of the engagement team and to verify the results of their work. (Ref: Para.A16 - A17)

Documentation

Additional Considerations for First-Time Audit Engagements

Before starting a first-time audit, the auditor should complete the following steps:

(a) Perform the procedures required by ISA 220 in relation to the acceptance of the client relationship and this audit engagement;

(b) in compliance with relevant ethical requirements, communicate with the predecessor auditor if there has been a change of auditor (see paragraph A22).

Application guidance and other explanatory material

The role and timing of planning(see point 2)

A2. Planning is not a separate stage of the audit, but rather is continuous and cyclical and in many cases begins immediately upon completion (or in connection with the completion) of the previous audit engagement and continues until the current audit engagement. Planning involves analyzing the timing of specific activities and audit procedures to be completed before proceeding with further audit procedures. For example, planning includes the need to consider issues such as before the auditor identifies and evaluates the risks of material misstatement:

list of analytical procedures to be performed as risk assessment procedures;
obtaining a general understanding of the legal regulation related to the activities of the organization, and how the organization complies with the requirements of these acts;
the procedure for determining materiality;
expediency of attracting experts;
the procedure for performing other risk assessment procedures.

Participation of key members of the audit team(see point 5)

Preliminary work on the assignment(see point 6)

A6. Performing these preliminary activities on the audit engagement allows the auditor to plan the engagement in such a way that in the course of its execution:

the auditor maintains independence and ability to carry out the audit engagement;
there would be no management integrity issues that could adversely affect the auditor's willingness to continue with the engagement.
there would be no misunderstandings with the client about the terms of the audit engagement.

Planning works

General audit strategy(see paragraphs 7-8)

A8. Provided that audit risk assessment procedures are followed, the overall audit strategy process helps the auditor to achieve certainty on matters such as:

the resources required to carry out work in specific areas of the audit, for example, using suitably qualified members of the audit team to work in high-risk areas or using experts to solve complex issues;
allocation of resources to specific audit areas, such as the number of audit team members dedicated to taking inventory of large stocks at their locations, the amount of review by other auditors in the case of a team audit, or the number of hours dedicated to high-profile areas risk;
When available resources should be used: for example, during the mid-term audit phase or at key key dates;
How resources are managed, allocated and monitored: for example, when should meetings be held to brief and hear members of the engagement team, how the engagement and manager reviews will be organized (e.g. in the workplace or remotely), should perform review checks on the quality of the assignment.

A9. The Appendix lists examples of comments related to the development of an overall audit strategy.

Audit plan(see point 9)

A12. The audit plan is more detailed than the overall strategy because it specifies the nature, timing and extent of audit procedures performed by the audit team members. Planning for these audit procedures is carried out throughout the audit as its plan is developed. For example, planning audit risk assessment procedures is carried out at the initial stage of the audit. However, planning the nature, timing and extent of any further audit procedures depends on the outcome of these risk assessment procedures. In addition, the auditor may initiate further audit procedures for evaluating certain types of transactions, account balances and disclosures before planning any other further audit procedures.

A13. Determining the nature, timing and extent of the planned risk assessment procedures and further audit procedures, in so far as they relate to disclosures, which are important in light of both the wide range of presentations and the level of detail that may be contained in the disclosures. ... Also, some disclosures may not be obtained from the main ledgers and subsidiary statements, which also affects the risk assessment and the nature, timing and extent of audit procedures in response to risks.

A14. Preliminary consideration of disclosures in an audit helps the auditor to devote adequate attention and plan adequate time to studying disclosures, in the same way that types of transactions, events and account balances are studied. Preliminary consideration can also help the auditor determine the impact on the audit:

Changes to planning decisions during the audit(see point 10)

A15. As a result of unforeseen events, changes in circumstances, or as a result of obtaining audit evidence obtained during the course of audit procedures, it may be necessary for the auditor to make changes to the overall audit strategy and audit plan, which will entail a change in the nature, timing and extent of further audit procedures from taking into account the revised analysis of assessed risks. This may be the case when the auditor obtains information materially different from that which was available in the original planning of the relevant audit procedures. For example, audit evidence obtained through substantive procedures may conflict with audit evidence obtained from testing controls.

Leadership, supervision and review(see paragraph 11)

A16. The nature, timing and extent of directing and overseeing the engagement team members and reviewing the work they perform will vary and depend on many factors, including the following:

the size and complexity of the organization;
audit area;
The assessed risks of material misstatement (for example, an increase in the assessed risk of material misstatement for a given audit area usually requires a corresponding increase in the scope and timeliness of leadership and control over the members of the engagement team, as well as more detailed examination of their work);
the abilities and level of training of the members of the audit team performing the audit engagement.

Features of small organizations

A17. If the audit is carried out exclusively by the engagement partner, then the issues of organizing leadership and control over the members of the engagement team do not arise. In such cases, the task manager, having independently completed all the procedures, is aware of all significant problems. When the same person conducts the entire audit, they may subsequently encounter practical problems in reaching an objective opinion on the appropriateness of the judgments made during the audit. If particularly complex or unusual issues are involved and the audit is conducted by an individual practitioner, it may be advisable to consult with other suitably qualified auditors or with a professional audit firm.

Documentation (Ref: Para. 12)

A18. The overall audit strategy documentation is a record of key decisions that are considered necessary to properly plan the audit and communicate significant matters to the engagement team. For example, the auditor may summarize the overall audit strategy in the form of a memorandum that contains key decisions on the overall scope, timing, and procedure of the audit.

A19. Audit plan documentation is a record of the planned nature, timing and extent of risk assessment procedures and further audit procedures at the assertion level in response to assessed risks. Documentation also serves as evidence of proper planning of audit procedures, which can be reviewed and approved prior to performing these procedures. The auditor may use standard audit programs or checklists tailored to the specific circumstances of the audit engagement.

A20. Documenting significant changes in the overall audit strategy and audit plan, as well as the resulting changes in the planned nature, timing and extent of audit procedures, explains the reasons for these significant changes, and the overall audit strategy and audit plan were finalized for conducted audit. The documents also reflect the appropriate response to significant changes occurring during the audit.

Features of small organizations

A21. As noted in paragraph A11, an appropriate brief memorandum can serve as a documentary of the audit strategy of a small organization. In developing the audit plan, standard audit programs or checklists (see paragraph A19) may be used, based on the assumption that there are few appropriate controls, which are likely to occur in a small organization, provided that such programs or checklists are used with taking into account the specific circumstances of the audit engagement, including the auditor's assessment of risks.

Additional Considerations for First-Time Audit Engagements(see paragraph 13)

A22. The purpose and purpose of planning the audit to be conducted remains unchanged for both a first-time audit engagement and a regular audit. However, when planning a first-time audit engagement, the auditor may find it necessary to expand the list of planning activities, since he does not have past experience with the auditee, which he could use when planning an audit that is conducted regularly. In developing the overall audit strategy and first-time audit plan, the auditor may consider some additional issues, including the following:

Application

(Ref: Para. 7-8, A8-A11)

Considerations for developing an overall audit strategy

This appendix provides examples of matters that the auditor might consider in developing an overall audit strategy. Many of these issues will affect the detailed audit plan. The examples provided cover a wide range of issues that are applicable to many audit engagements. While some of the questions below may be included in the requirements of other ISAs, not all of these questions remain relevant for every audit engagement, and the list is not necessarily exhaustive.

Features of the audit engagement

Reporting Objectives, Audit Timing and Communication Patterns

the reporting calendar of the organization, for example, in the interim and final stages;
organizing meetings with management and those charged with governance to discuss the nature, timing and extent of the audit work;
Discussion with management and those charged with governance about the intended types of reports and their timing, and other communications, both written and oral, including the auditor's report, letters from management, and communications with those charged with governance. control;
Discussing with management the expected communication of audit progress throughout the engagement.
Discussion with the auditors of the organization's components of issues related to the expected types and timing of reports to be provided, as well as other issues related to the audit of the components;
The expected nature and timing of communication between the engagement team members, including the nature and timing of team meetings and the timing of the review of the work performed;
the need for communication with third parties, including any statutory or contractual reporting obligations arising from the audit.

Significant factors, preliminary work on the assignment and information obtained in the course of completing other assignments:

Nature, terms of use and amount of resources:

Selecting and assigning responsibilities to the engagement team (including, where applicable, the engagement quality reviewer), including assigning more experienced engagement team members to areas with a higher risk of material misstatement.
budgeting of the assignment, including setting the amount of time that needs to be allocated to work in those areas where an increased risk of material misstatement is possible.

ISA 220, Quality Control in an Audit of Financial Statements, paragraphs 12-13.

ISA 220, paragraphs 9-11.

ISA 210, Agreeing the Terms of Audit Engagements - paragraphs 9-13.

ISA 315 (Revised), “Identifying and Assessing the Risks of Material Misstatement by Studying the Entity and Its Environment”.

ISA 330, Audit Procedures Responsive to Assessed Risks.

ISA 230, Audit Documentation, paragraphs 8-11 and A6.

ISA 220, paragraphs 12-13.

HKSA 315 (Revised), paragraph 10, paragraph 15 of HKSA 240, The Auditor's Responsibilities Relating to Fraud in an Audit of Financial Statements, provides guidance that This discussion focuses on the exposure of the entity's financial statements to material misstatement due to fraud.

ISA 260 (Revised), Communication with Those Charged with Governance - paragraph 13.

ISA 220, paragraphs 15-17.

ISA 510 First-Time Audit Engagements: Opening Balances.

ISA 320, Materiality in Planning and Performing an Audit.

ISA 600, Special Considerations - Audits of Group Financial Statements (Including the Work of Component Auditors) - paragraphs 21-23 and 40 (c).

Identifying errors in FI is the main goal of the audit.

Objective of ISA 240 Establishing standards and providing guidance on the auditor's responsibility to deal with fraud and error in the audit.

Errors is an unintentional distortion of reporting:

Mathematical errors;

Account errors;

FHD facts omission;

Incorrect application of the UE.

Fraud is a deliberate act committed with the aim of obtaining an illegal benefit:

Manipulation;

Falsification;

Distortions of reporting;

Assignment of assets;

Concealment or omission of accounting information in documents;

Reflection of non-existent transactions;

Incorrect application of the UE.

To detect fraud and errors, the auditor may send inquiries to the client's management regarding:

management's assessment of the risk of material misstatement as a result of fraud and error;

accounting systems and ICS;

identifying management awareness of fraud and errors.

Such work is necessary to reduce audit risk(ISA 400).

The auditor at the planning stage should assess the risks arising from the audit. The risk is influenced by:

Doubts about the honesty and competence of management;

Pressure on the auditor;

Unusual operations;

Problems in collecting sufficient and relevant evidence.

Audit risk means that an inappropriate opinion may be expressed by the auditor when the financial statements contain financial misstatements.

The auditor should conduct verification procedures that indicate possible misstatements.

The auditor should document the risk factors for fraud.

The auditor is obliged to report this information to the client's management in case of detection of misstatements and fraud (ISA 260). This message should contain information about significant deficiencies in internal controls.

When violations are serious and fraudulent, it is the auditor's responsibility to report to law enforcement.

The auditor may withdraw from the engagement if there is a serious misstatement and disagreement with the client's management.

There are no terms "error" and "fraud" in the PSAD.

8. Msa 300 - planning an audit of financial statements

Planning for the purposes of ISA 300 “Planning” refers to the development of an overall strategy, as well as detailing the nature, timing and scope of the audit.

Adequate planning of audit work allows you to achieve an understanding that all important aspects of the audit are given due consideration. Also, planning allows you to identify possible problems to complete the work as soon as possible.

The planning process makes it possible to distribute assignments among auditor assistants and coordinate the work of other auditors and experts (technical, legal, and information technology).

The scope of audit planning is influenced by:

The size of the economic entity;

The complexity of the audit;

The experience of the auditor with the audited entity;

Business knowledge of an economic entity.

When developing overall audit plan the auditor must take into account the audit procedures, as well as the risk of undetected errors and fraud.

On the size of the economic entity;

The complexity of the audit;

Specific techniques and technological processes that are supposed to be used in the audit.

When developing an audit plan, consider:

Information about the business of the economic entity;

Understanding of the accounting system and internal control;

Risk and Materiality;

The nature, timing and scope of the procedures;

Coordination, supervision and analysis of work;

Other aspects.

Audit program- a set of instructions for the auditor's assistants, as well as - a means of monitoring the performance of work.

The audit planning process is carried out continuously throughout the audit due to possible changes in various circumstances; changes should be documented.

The International Standards on Auditing (ISA) provide uniform basic principles that should be followed by all auditors in the course of their professional activities. They contribute to the achievement of a twofold goal:

Development of audit in those countries where the level of professionalism is below the global level;

To the extent possible, harmonize audit approaches internationally.

HKSA 300, Planning an Audit of Financial Statements, addresses the auditor's responsibility to plan an audit of financial statements.

Audit planning involves establishing an overall audit strategy for the audit engagement and developing an audit plan.

Adequate planning contributes to the achievement of audit objectives in several ways, including the following:

Helps to ensure that critical areas of audit are given due consideration.

Helps the auditor identify and resolve potential problems in a timely manner.

Helps the auditor to properly organize and manage the implementation of the audit engagement to ensure effective implementation.

Assists in the selection of project team members with the appropriate level of ability and competence to respond to anticipated risks, as well as in the division of work among the project team members.

Facilitates the direction and supervision of the work of the team members on the project, as well as the verification of their work.

Assists, if necessary, in coordinating the work performed by component auditors and experts.

The goal of the auditor is to plan the audit so that it can be performed effectively.

The auditor should take the following actions at the outset of the current audit engagement:

Compliance with the procedures required by ISA 220 "Quality Control of an Audit of Financial Statements" regarding the continuation of the relationship with the client and the specific audit engagement;

Assessment of compliance with ethical requirements, including independence, as required by ISA 220, Quality Control of an Audit of Financial Statements; and

Establishing an understanding of the terms of the engagement, as required by ISA 210, Negotiating the Terms of Audit Engagements.

The auditor should plan for the nature, timing and extent of the direction of the project team's work, overseeing the project team members, and reviewing their work.

The auditor should include in the audit documentation (ISA 230, "Audit Documentation"):

General audit strategy;

Audit plan;

Any significant changes made during the audit engagement to the overall audit strategy or audit plan and the reasons for such changes.

The auditor should take the following actions prior to initiating the initial audit engagement:

Perform the procedures required by ISA 220 in relation to client acceptance and specific audit engagement;

Contact the predecessor auditor in the event that there has been a change of auditors in accordance with ethical requirements that are relevant in the circumstances.

The nature and scope of the planning work will vary depending on the size and complexity of the entity's organizational structure, the past experiences of key project team members with the entity, and changes in circumstances that have arisen during the execution of the audit engagement.

The planning process does not consist of disparate parts, but rather is continuous and repetitive. This process usually begins almost immediately after the completion of the previous audit (or concurrently with it) and continues until the completion of the current audit engagement. However, when planning the audit, the auditor should take into account the timing of certain work and audit procedures that must be completed before further audit procedures are performed. For example, planning includes the need to consider, before the auditor identifies and assesses the risks of material misstatement, such matters as:

Analytical procedures to be performed as part of a risk assessment.

Gaining general knowledge about the regulatory framework applied to the entity and the subject's compliance with the requirements of this framework.

Determination of the level of materiality.

Participation of experts.

Performing other risk assessment procedures.

The auditor may decide to discuss the planning elements with the entity's management. This is done to facilitate the conduct and management of the audit engagement (for example, to coordinate some of the planned audit procedures with the work of the entity's personnel). Although these discussions are frequent, the auditor is still responsible for the overall audit strategy and plan. When discussing matters included in the overall audit strategy and audit plan, every effort should be made to ensure that the effectiveness of the audit is not compromised. For example, discussing the nature and timing of detailed audit procedures with the entity's management may jeopardize the effectiveness of the audit by making the audit procedures too predictable.

The involvement of the project partner and other key members of the project team in audit planning allows their experience and insights to be leveraged, thereby increasing the efficiency and effectiveness of the planning process.

Scope of this ISA

The role and timing of planning

Helps the auditor pay due attention to important aspects of the audit;

Helps the auditor to identify and eliminate possible problems in a timely manner;

Helps the auditor to properly organize and manage the audit engagement in such a way as to ensure its effective execution;

Assists in the selection of audit team members with the appropriate skills and qualifications to mitigate anticipated risks, as well as in the distribution of work between them;

Facilitates the management and control of the members of the audit team, as well as the analysis of the results of their work;

Whenever this is the case, assists in coordinating the work of the auditors of the components of the organization and experts.

Effective date

3. This ISA is effective for audits of financial statements for periods beginning on or after December 15, 2009.

Target

4. The objective of the auditor is to plan the audit in such a way that it will be carried out effectively.

Requirements

Participation of key members of the audit team

5. The engagement leader and other key members of the engagement team should be involved in planning the audit, including scheduling and participating in discussions among the engagement team (see paragraph A4).

Preliminary work on the assignment

6. At the beginning of the audit engagement, the auditor should take the following actions:

(a) Perform the procedures required by ISA 220 in relation to the continuation of the client relationship and this audit engagement * (1);

(b) assess compliance with relevant ethical requirements, including independence, in accordance with ISA 220 * (2);

Planning works

7. The auditor should develop an overall audit strategy that reflects the scope, timing and focus of the audit, and is the basis for developing the audit plan.

8. In developing an overall audit strategy, the auditor should:

(a) Identify features of the audit engagement that are critical to the scope of the engagement;

(b) confirm the objectives of the engagement reporting to plan the timing of the audit and the nature of the communications needed;

(c) Analyze factors that, in the auditor's judgment, are significant in determining the direction of the engagement team.

(e) Determine the nature, timing and extent of resources required to conduct the audit (see paragraphs A8 - A11).

9. The auditor should develop an audit plan that describes:

(a) the nature, timing and extent of the planned risk assessment procedures as required by ISA 315 (Revised) * (4);

(b) the nature, timing and extent of planned subsequent audit procedures at the assertion level, as defined in ISA 330 * (5);

(c) other planned audit procedures that are required to be performed in order for the audit engagement to comply with the requirements of the ISAs (see paragraph A12).

10. During the course of the audit, the auditor should make changes to the overall audit strategy and plan as necessary (see paragraph A13).

11. The auditor should plan the nature, timing and extent of the work to direct and monitor the engagement team members and to verify their performance (see paragraphs A14-A15).

Documentation

12. The auditor should include in the audit documentation * (6):

(a) the overall audit strategy;

(b) the plan for the audit to be performed;

(c) any significant changes made during the audit to the overall audit strategy or audit plan and the reasons for those changes. (Ref: Para.A16 - A19)

Additional Considerations for First-Time Audit Engagements

13. Before starting a first-time audit, the auditor should:

(a) Perform the procedures required by ISA 220 in relation to the acceptance of the client relationship and this audit engagement * (7);

(b) if there has been a change of auditor, in compliance with relevant ethical requirements, communicate with the predecessor auditor (see paragraph A20).

Application guidance and other explanatory material

Planning Role and Timing (Ref: Para. 2)

List of analytical procedures to be performed as risk assessment procedures;

Obtaining a general understanding of the regulatory legal acts related to the activities of the organization and how the organization fulfills the requirements of these acts;

The procedure for determining materiality;

Feasibility of attracting experts;

Procedure for performing other risk assessment procedures.

Participation of Key Members of the Engagement Team (Ref: Para. 5)

A4. The engagement of the engagement leader and other key engagement team members in planning the audit involves leveraging their experience and understanding of the matter, which leads to an effective and efficient planning process. * (8)

Preliminary Engagement Work (Ref: Para. 6)

A6. Performing these preliminary activities on the audit engagement allows the auditor to plan the engagement in such a way that in the course of its execution:

The auditor would maintain independence and ability to carry out the audit engagement;

There would be no management integrity issues that could negatively affect the auditor's willingness to continue with the engagement;

There would be no misunderstandings with the client regarding the terms of the audit engagement.

Planning works

Overall Audit Strategy (Ref: Para. 7-8)

A8. Provided that audit risk assessment procedures are followed, the overall audit strategy process helps the auditor to achieve certainty on matters such as:

Resources required to carry out work in certain areas of the audit, for example, using suitably qualified members of the audit team to work in areas of high risk, or using experts to solve complex issues;

Allocation of resources to specific audit areas, such as the number of audit team members dedicated to taking inventory of large stocks at their locations, the amount of review by other auditors in the case of a team audit, or the number of hours dedicated to high-profile areas. level of risk;

When to use the available resources: for example, during the mid-term audit phase or at key key dates;

How resources are managed, allocated and monitored: for example, when should meetings be held to brief and hear members of the engagement team, how the engagement and manager reviews will be organized (for example, in the workplace or remotely), should perform review checks on the quality of the assignment.

A9. The Appendix lists examples of comments related to the development of an overall audit strategy.

Features of small organizations

Audit Plan (Ref: Para. 9)

Changes to Planning Decisions During the Audit (Ref: Para. 10)

Direction, Control and Review (Ref: Para. 11)

A14. The nature, timing and extent of directing and overseeing the engagement team members and reviewing the work they perform will vary and depend on many factors, including the following:

The size and complexity of the organization;

Audit scope;

The assessed risks of material misstatement (for example, an increase in the assessed risk of material misstatement for a given audit area usually requires a corresponding increase in the scope and timeliness of leadership and control over the members of the audit team, as well as more detailed examination of their work);

The ability and level of training of the members of the audit team performing the audit engagement.

Features of small organizations

Documentation (Ref: Para. 12)

Features of small organizations

Additional Considerations for First-Time Audit Engagements (Ref: Para. 13)

Agreements that need to be reached with the predecessor auditor, for example, to make it possible to review his working papers, except where prohibited by law or regulation;

All principal matters (including the application of accounting principles or auditing and financial reporting standards) discussed with management in connection with the initial appointment of the auditor, communicating these matters to those charged with governance, and the impact of these matters on the overall audit strategy and audit plan ;

Audit procedures necessary to obtain sufficient appropriate audit evidence about the opening balances * (10);

Other procedures required by the firm's quality control system for first-time audit engagements (for example, the firm's quality control system may involve another partner or senior officer in reviewing the overall audit strategy prior to significant audit procedures or reviewing reports prior to issue) ...

* (1) ISA 220, Quality Control in an Audit of Financial Statements, paragraphs 12-13.

* (2) ISA 220, paragraphs 9-11.

* (3) ISA 210, Agreeing the Terms of Audit Engagements, paragraphs 9-13.

* (4) ISA 315 (Revised), "Identifying and Assessing the Risks of Material Misstatement by Studying the Entity and Its Environment."

* (5) ISA 330, Audit Procedures in Response to Assessed Risks.

* (6) ISA 230, Audit Documentation, paragraphs 8-11 and A6.

* (7) ISA 220, paragraphs 12-13.

* (8) HKSA 315 (Revised), paragraph 10, paragraph 15 of HKSA 240, The Auditor's Responsibilities Relating to Fraud in an Audit of Financial Statements, provides guidance for the engagement team's discussion of the entity's exposure to material misstatement. that the discussion focuses on the entity's exposure to material misstatement due to fraud.

* (9) ISA 220, paragraphs 15-17.

* (10) ISA 510 "Audit engagements performed for the first time: balances at the beginning of the period."

Application
(Ref: Para. 7-8, A8-A11)

Considerations for developing an overall audit strategy

Features of the audit assignment:

The financial reporting framework on the basis of which the financial information to be audited was prepared, taking into account the possible need to verify compliance with any other financial reporting framework;

Industry-specific reporting requirements, such as reports mandated by industry regulators;

The intended audit coverage, including the number and location of the audited components of the organization;

The nature of the control relationship between the parent and its components that determines how the group is consolidated;

The scope of the audit of the components of the organization performed by third-party auditors;

The nature of the business segments to be audited, including the need for expertise;

The reporting currency used, including the need to translate the audited financial information from one currency to another;

The need for statutory audits of individual financial statements in addition to audits for consolidation purposes;

The presence of an internal audit service in the organization and, if any, consideration of in what areas and to what extent the results of the work of this service can be used for the purposes of the audit, when the nature and volume of the planned use of the work of internal auditors allows direct participation;

The intended use of audit evidence obtained from previous audit engagements, for example, evidence related to risk assessment procedures and testing of controls.

The actual impact of information technology on audit procedures, including the availability of data and the expected use of automated audit techniques;

Reconciling the intended scope and timing of the audit with the reviews of interim financial information, and the impact of the information obtained from such reviews on the audit;

Availability of personnel and customer data.

Reporting objectives, audit timing and nature of communication:

The reporting calendar of the organization, for example, in the interim and final stages;

Organizing meetings with management and those charged with governance to discuss the nature, timing and extent of the audit work;

Discussion with management and those charged with governance about the expected types of reports and their timing, and other communications, both written and oral, including the auditor's report, management letters, and communications with those charged with governance. control;

Discussion with management regarding the expected communication of the progress of the audit work throughout the engagement;

The expected nature and timing of communication among the engagement team members, including the nature and timing of team meetings and the timing of the review of the work performed;

The need for communication with third parties, including any statutory or contractual reporting obligations arising from an audit.

Significant factors, preliminary work on the assignment and information obtained in the course of completing other assignments:

The procedure for determining materiality in accordance with ISA 320 * and, where applicable:

The procedure for determining materiality for the components of the organization and communicating this information to the auditors of the components in accordance with ISA 600 **

Preliminary identification of significant components and material classes of transactions, account balances and disclosures;

Proactively identifying areas where the risk of material misstatement is possible;

The impact of the assessed risk of material misstatement at the level of all financial statements on management, supervision and review;

The way in which the auditor draws the attention of the audit team members to the need to question and follow the principle of professional skepticism in collecting and evaluating audit evidence;

Results of the previous audit, during which the operational efficiency of the internal control system was assessed, including the nature of the deficiencies identified and the measures taken to eliminate them;

Discussion of matters that may affect the conduct of the audit with the staff of the audit organization responsible for providing other services to the audited organization;

Evidence of management's commitment to the design, implementation and maintenance of a sound internal control system, including evidence that adequate documentation is available for such a system;

The volume of transactions, which can play a decisive role in the auditor's decision as to whether it would be more effective to rely on internal control;

Organization-wide awareness of the importance of the internal control system for the successful conduct of the organization's operational activities;

Significant business events affecting the organization, including changes in information technology and business processes, changes in key management of the organization, as well as acquisitions, mergers and acquisitions;

Significant events in the development of the industry, such as changes in the requirements of industry regulations and new requirements for reporting;

Significant changes in the financial reporting framework, such as changes in financial reporting standards;

Other significant changes affecting the organization, such as changes in the regulatory framework.

Nature, terms of use and amount of resources:

Selecting and assigning responsibilities to the engagement team (including, where appropriate, the engagement quality reviewer), including assigning more experienced engagement team members to areas with a higher risk of material misstatement;

Estimating the assignment, including setting the amount of time that needs to be allocated to work in areas where there is an increased risk of material misstatement.

______________________________

* ISA 320 Materiality in Planning and Performing an Audit.

** ISA 600, Special Considerations - Audits of Group Financial Statements (Including the Work of Component Auditors), paragraphs 21-23 and 40 (c).

Document overview

Introduced International Standard on Auditing (ISA) 300, Planning an Audit of Financial Statements. It should be read in conjunction with ISA 200, Principal Objectives of the Independent Auditor and Conducting an Audit in Accordance with International Standards on Auditing.

The standard relates to repeat audit engagements. Separately, additional notes related to the task performed for the first time are presented.

The development of a general audit strategy is envisaged.

The document is effective for audits of financial statements for periods beginning on or after December 15, 2009.

In our country, ISA 300 was put into effect by order of the Ministry of Finance of Russia dated October 24, 2016 N 192n.