Audit Plan
An audit plan states the overall strategy and detailed steps to be followed in an audit. The plan includes risk assessment procedures and additional procedures to be followed based on the outcome of the risk assessment. The contents and timing of the plan will vary from year to year, depending on changes in the client's circumstances [Accounting Tools].
An audit plan is a guideline to be followed when conducting an internal or external audit. Internal audits are usually conducted by a company’s accounting staff and are primarily used for a management review of accounting processes. External audits are conducted by external public accounting firms or private certified public accountants (CPA) to ensure outside stakeholders that that jurisdiction's accepted accounting principles prepare the company’s financial information. External audits usually use a formal plan for auditors to follow.
In most cases, an audit plan consists of the following phases: planning, fieldwork, a follow-up meeting, and a remedial audit. The planning phase is when external auditors meet with company management to determine which accounting processes will be audited and what the depth and breadth of the audit should be. During this initial meeting, auditors typically request that the company managers prepare a specific sample of accounting information for auditors to review. Asking for this information during the planning phase ensures auditors don't waste time collecting this information when conducting fieldwork [SmartCapitalMind].
Audit plan definition. Accounting Tools. Retrieved from: https://www.accountingtools.com/articles/audit-plan
What is an Audit Plan? SmartCapitalMind. Retrieved from: https://www.smartcapitalmind.com/what-is-an-audit-plan.htm