Audit Planning (AAS 8 ) Simplified

For explaining audit planning, AAS 8 was made. Like planning of any work, audit work should be done on the basis of perfect plan. An auditor should make the audit plan statement when he starts the audit of a company. In this statement, he should mention the answers of following questions.

Every answer will be step of audit planning.

Question 1. When will audit start?

Answer : Time of starting audit should be determined because delay in the starting of audit work will delay in completion. Auditor should fix it in advance. For example, audit will start from 2nd jan. 2014.

Question 2. Who will be in the team for an audit? 

Answer. Auditor is just like a doctor who have lots of clients like doctor has lots of patients. It will be easy for auditor if auditor will fix the team for auditing work. In this team, auditor should write his employees name. Employees should also be informed about their audit duty in advance.

Question 3. How will audit to be done?

Answer. Auditor should fix the steps which will be taken in practical of audit work. For example which accounting information will be verified. Is it be sample base or not? Name of officers and employees of company which will be involve in audit discussion.

Question 4. How much time will spend for completing the audit?

Answer. Auditor should fix the total time which will be used for audit completion.

Question 5. If there is technical matter which is outside of his accounting, auditing and taxation area, from where will auditor get expert advice?

Answer. Today, time is of information technology. Businesses are done through ecommerce. If auditor has to audit an e-commerce company, there may be the need of web or mobile developer to know some technical knowledge relating to online business transactions. At that time, auditor should write the name of such developer in the report after fixing the cost and other matters relating to his audit case.

Question 6. What will be the significant area of audit?

Answer. There is big area of audit, auditor should limit his scope of audit according to the nature and area of business of company.

Question 7. What will be the purpose of audit?

Answer. Auditor should fix also the purpose of audit. For example, few days ago, I obtained the call from CA from Delhi. He was interested to know the treatment of corpus  fund treatment in the financial statement. Few years ago, I wrote on this topic, I could not at that time what I wrote at that time. So, I took sometime from him. Actually, that auditor's aim was very clear, he wants to know what is the base of my writing. Whether, I have written on any court's decision or follow any accounting standard for calculation of corpus fund. After study it again, I can tell it was only on the basis of my research. Actually, I want to say, if any auditor has fixed his purpose of audit, he will reach fastly at his result of auditing. He will do work in right direction. He will search for only fulfilling his purpose. Without fixing the purpose, he may waste his time and energy to complete the audit.

Question 8. Will we use internal audit report for auditing?

Answer. For this, he should check the quality of internal audit.

Question 9. How will auditor allocate the work of audit between joint auditors?

Answer. For this, he should discuss with company and other auditors.

Question 10. What main documents which will use for audit?

Answer : It may be just financial statements and voucher but for deep audit, audit can use each document of company. But its list should be mention in the answer of this question.

When auditor will write the answer of these questions or all the other questions which he will include, this audit plan statement will become helpful

a) To complete audit on the time.
b) To identify the problems of audit.
c) To increase the co-ordination between other auditors.

Related : List of AAS






access account accountant Accounting accounting definitions accounting ebook Accounting education accounting procedure accounting process outsourcing Accounting Software advance advertising africa Amalgamation amendments announcements Annuity assets audit auditing Australia B.Com. balance sheet bank Bank reconciliation banking basic accounting BBA benefits best bill black money blog bloggers book keeping bookkeeping Branch Accounting - full tutorial budget Budget variance business businessman CA calculator canada capital capital budgeting career cash cash book cash flow statement Chiense children china class coaching coins college commerce commerce students company computer computer accounting conference Contact vinod kumar Control Your Spending corporate accounting cost cost accounting cost center cost centre CPA credit credit card cs currency data Debit and credit debit cards debt debtor degree depletion depreciation Diwali Messages documents dollar domain Downloads Dubai e-accounting earning education Education Loans email employee EPF ERP euromoney examination excel excise duty expenses facebook factor of loan fans feature fifo FII fiji finacle finance Finance Journal Entries Financial financial accounting fire insurance flickr flow forensic forex formula france fraud free fun function fund GAAP GDP gdr germany gold goodwill goodwill accounting google google apps Google Adsense google apps google base google buzz google calendar Google docs google finance google fusion tables google talk govt. GST guide health Hindi Hindi Language history holding company How to treat FBT in Tally 9 HRA ICAI ICAWI ICICI Bank IFRS income income statement Income Tax India indian railway Indonesia inflation inflation accounting infographics information inspiration insurance insurance accounting Intangible interest international Internet Introduction of Tally 9 inventory investment investment in Shares invoice IT Japan Job costing journal entries Journal Entries eBook Help Kalculate keyboard kindle kuwait laptop law LBT learning lease lecture ledger leducation Leverage Analysis liabilities lifo linkedin loan logical point loss loss of profit M.Com. m.phil malaysia management accounting manual accounting manufacturing account market marketing mastercard material MBA MCA media migration mobile money ms word ms. excel multi currency in tally 9 Multicurrency Accounting mutual fund national security new and sacrifice ratio new york times new zealand news NGO nonprofit-accounting North Georgia Mountains NPV NSE odbc office oman online application online accounting Online Accounting Course otcei pakistan parents Partnership pay pal pdf Personal Finance pie chart pie chart of income pnb podcast ppf presentation price privacy policy prize money prof. vinod kumar profit profit and loss account project management provision purchase puzzles quickbooks Quote quotes quotes of svtuition rating agency ratio analysis RBI readers real estate rectification of errors remote control reports reserves responsibility accounting retirement revenue Revenue reserves review risk rupees salary sale saudi arabia saving sbi scholarship school SEBI security service tax share share trading Shares shri lanka singapore sms social accounting society solution South Africa stock stock exchange structure student students study subsidiary company svtuition swiss bank tally tally 9 Tally 7.2 Tally 9 Tally.ERP 9 tanzania tax Tax Accounting TDS teacher teaching technology test testimonial testimonials thailand tips trading trading on equity transaction trend trial balance truthfulness tuition twitter UAE UGC - NET Commerce UK United Arab Emirates university usa valuation VAT Video Voucher and vouching Wealth wikipedia working capital youtube
Accounting Education: Audit Planning (AAS 8 ) Simplified
Audit Planning (AAS 8 ) Simplified
Accounting Education
Not found any lecture VIEW ALL Continue reading Reply Cancel reply Delete By Home PAGES Lectures View All RECOMMENDED FOR YOU Category ARCHIVE SEARCH ALL Lectures Not found any lecture match with your request, please help to write it and send it to our email at for making this website free accounting and finance encyclopedia. Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock