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Msa 300 audit planning. Planning an audit of financial statements in accordance with international auditing standards

INTERNATIONAL STANDARD
AUDIT 300
"PLANNING THE AUDIT
FINANCIAL STATEMENTS "
Completed by a student of the EEZ - 401 group:
Druzhinina Oksana Alexandrovna
Teacher: Kudryavtseva Irina
Yuryevna

ISA 300 basics

ISA No. 300 "Planning an Audit of Financial Statements" in the system of Russian
audit standards complies with the Federal rule (standard) of auditing
Activity No. 3 "Audit Planning", which differs significantly from the international auditing standard.
The main difference is that, in accordance with the PCA, the auditor, when planning
the audit must develop two documents - a general audit plan and an audit program,
while according to ISA it is intended to develop an overall audit strategy and
detailed audit plan. As provided by the provisions of the Russian standard, in
the general audit plan describes the expected scope and procedure for conducting
audit. It serves as a guide in developing the audit program. In a programme
audit determines the nature, time frame and scope of the planned
audit procedures necessary to implement the overall audit plan.
The general audit strategy described in the ISA sets the scope. timing and
the direction of the audit and serves as a guide in developing a detailed plan
audit. Thus, in general, by purpose "and the content of the document on the general
the audit strategy is consistent with the overall audit plan of the PCA, and
a detailed audit plan to be developed in accordance with ISA,
complies with the audit program provided by the PCA.
In the Russian standard, the concept of "planning scope" used in ISA,
replaced by the narrower concept of "planning time". Such
the change is not entirely correct, since the ISA stipulates that the term
“Scope” generally refers to audit procedures that are considered
necessary under the circumstances.
The audit planning procedure is governed by International Standard on Auditing No. 300
“Planning an Audit of Financial Statements”, we present the standard below.

Terms

For the purposes of ISA, the following terms have the following
meaning:
1.approval - express or other representations of the management contained in
in financial statements and used by the auditor to analyze various categories
potential distortions;
2.commercial risk - risk arising from material conditions, events,
circumstances, actions or omissions that could adversely affect
the ability of an organization to achieve its goals and achieve its
strategy, or associated with setting inadequate goals and developing
inadequate strategy;
3.internal control - a process that is designed, implemented and maintained
representatives of the owner, management and other employees in order to
providing reasonable assurance about the achievement of the organization's objectives in terms of
reliability of financial statements, efficiency and effectiveness of operations,
compliance existing laws and regulations. The term "controls"
refers to any aspect of one or more elements internal control.
4.Risk assessment procedures - audit procedures aimed at obtaining
ideas about the organization and the environment of its activities, including the system of internal
control, identification and assessment of the risks of material misstatement, whether due to
fraud or error at the level of financial statements and statements;
5.Significant risk is the identified and assessed risk of material misstatement,
which, in the auditor's opinion, requires special analysis

Scope of this ISA

International Standard on Auditing (ISA) 300
"Planning an Audit of Financial Statements"
should be read in conjunction with ISA 200
"The main objectives of the independent auditor and
audit in accordance with
International Standards on Auditing ".
This International Standard on Auditing
(ISA) specifies the auditor's responsibilities for
planning the audit of financial statements.
This standard refers to repeated
audit assignments. Separately presented
additional notes related to
first time audit engagement.

Auditor's Purpose, Role and Timing of Audit Planning

The objective of the auditor is to plan the audit in such a way that he
was carried out efficiently.
Audit planning involves developing overall strategy audit on assignment and
drawing up an audit plan. Proper planning is helpful when conducting an audit
financial statements because:
-helps the auditor to pay due attention important aspects 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
the process of its implementation in such a way as to ensure its effective implementation;
- assists in the selection of audit team members with appropriate
skills and qualifications to reduce the expected risks, as well as in the distribution
works between them;
- facilitates the provision of guidance and control over the members of the audit team, and
analysis of the results of their work;
- in cases where this is the case, assists in the coordination of the work of auditors
organization components and experts.

Audit Documentation for ISA 300

(a) the overall audit strategy;
(b) the plan for the audit to be performed;
(c) any significant changes made
during the audit in general
audit strategy or plan for the audit
audit, as well as the reasons for these changes.

Engagement of key members of the audit team and Preparatory activities for the engagement

To audit planning, including planning
discussions between members of the audit team and participation
in them, the head of the audit
checks and other key members of the audit team
When embarking on a current audit engagement,
the auditor should do the following:
(a) perform procedures as required
ISA 220 Regarding the Continuation of a Relationship with
the client and acceptance of this audit engagement;
(b) in accordance with ISA 220, assess compliance with
applied ethical standards including the requirement for
independence;
(c) agreeing on the terms of the audit engagement in accordance with
with the requirements of ISA 210

Audit plan

The audit plan suggests a more detailed description
checks than the general strategy, since it
the nature, timing and scope of audit
procedures to be performed by members
audit team. Planning such procedures
carried out during the entire audit as
development of a plan for the implementation of the audit engagement.
For example, planning audit assessment procedures.
risk occurs early in the audit. but
planning the nature, timing and scope of certain
subsequent audit procedures depend on
the results of the implementation of risk assessment procedures. Besides
In addition, the auditor can initiate subsequent
procedures for evaluating certain classes of transactions,
account balances and disclosures before planning
all other subsequent audit procedures.

Management, control and review

The nature, timing and extent of management and control of members
audit team, as well as a review
the results of their work depend on many factors, such as:
- the size and complexity of the structure of the organization;
-the scope of audit;
- an assessment of the risks of material misstatement (for example,
increasing the assessment of the risks of material misstatement in
this audit area usually requires appropriate
increasing volume and ensuring timeliness
management and control of members of the audit team, and
also a deeper review of their work);
- the skills and qualifications of individual members of the audit
audit teams.
ISA 220 provides additional guidance on
the management and control of the audit, as well as
verification of its results.

10. Changes in planning decisions during the audit

Unforeseen events, change of circumstances or
audit evidence obtained in the course of
audit procedures can lead to
the need to change the overall audit strategy and plan,
and hence the planned nature, timing and volume
subsequent audit procedures, taking into account
revised analysis of assessed risks. Such
situation may arise when, to the attention of the auditor
information arrives that differs significantly from that
which was available when planning audit
procedures. For example, audit evidence,
obtained during the implementation of the verification procedures for
substance, may contradict the audit
evidence obtained from tests of funds
control.

11.

THANK YOU FOR YOUR ATTENTION!

12.1 Scope of this ISA 300

A) This International Standard on Auditing (ISA) specifies
the auditor's responsibilities in applying the principle of materiality in
planning and conducting an audit of financial statements. ISA
explains how the principle of materiality is applied when
assessing the impact on the audit of identified misstatements, as well as the impact
uncorrected misstatements, if any, to financial
reporting.
B) This International Standard on Auditing (ISA) specifies
the auditor's responsibilities to identify and assess the risks of material
misstatement of financial statements by examining
the organization and its environment, including the internal control system
organizations.
B) This International Standard on Auditing (ISA) specifies
the auditor's responsibilities in planning the audit of the financial
reporting. This ISA deals with re-audit
assignments. Additional notes are presented separately,

13.2 Purpose of ISA 300

A) The purpose of the auditor is to plan the conduct of
audit in such a way that it is carried out effectively.
B) The purpose of the auditor is to identify and assess risks
material misstatement, whether due to bad faith
actions, and due to error, at the level of financial statements
and at the level of premises, through the study of the organization and its
the environment, including the organization's internal control system,
thus providing a framework for the design and implementation
audit procedures in response to the assessed risks of material
distortion.
C) The purpose of the auditor is to plan and
auditing properly apply the principle
materiality.

14. 3. Documentation

A) The auditor should include in the audit documentation:
<1>
(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 strategy.
audit plan or audit plan and the reasons for these changes Additional
considerations regarding first-time audit engagements
B) The auditor should include in the audit documentation:
<1>ISA 230 "Audit Documentation"
(a) Discussion among the engagement team and significant decisions made;
(b) key elements of understanding each aspect of the organization and its environment, and
of each of the elements of its internal control system, sources of information, of which
such an understanding was received; as well as performed risk assessment procedures;
(c) the identified and assessed risks of material misstatement at the financial
reporting and at the assertion level in accordance with the requirements of paragraph 25;
(d) the identified risks and associated controls over which the auditor
understanding has developed as a result of the application of the requirements of paragraphs 27 - 30.
C) The auditor should include in the audit documentation the following quantities and factors,
which were analyzed in determining these values:
<1>ISA 230 "Audit Documentation"
(a) materiality to the financial statements as a whole;
(b) where relevant, the level or levels of materiality for certain types operations,
account balances or disclosures;
(c) materiality to the performance of audit procedures;
(d) evidence of revisions to the materiality levels set out in paragraphs (a) - (c) during
audit.

15. 4. Before starting the audit for the first time, the auditor should do the following:

A) (a) carry out the procedures required by ISA 220 in relation to
acceptance of the relationship with the client and this audit engagement;
(b) in compliance with the relevant ethical requirements
communicate with the predecessor auditor if
there was a change of auditor
B) Gaining an understanding of the auditee and its environment,
including internal controls of the organization (hereinafter
called "understanding of the organization"), is a continuous
dynamic process of collecting, updating and analyzing information
throughout the audit. This understanding creates a system
criteria within which the auditor plans the audit and makes
professional judgment throughout the audit
C) Carrying out procedures in response to assessed risks
material misstatement, including design and implementation
further audit procedures to obtain sufficient
appropriate audit evidence

16. 5. Participation of key members of the audit team

A) Involvement of the assignment leader and other key members
the audit team in planning the audit involves
using their experience and ability to understand the essence of the issues that
leads to an increase in the effectiveness and efficiency of the process
planning.
B) Requirements and recommendations for discussion by the audit team
issues of the organization's financial reporting exposure
ISA 315 (Revised) addresses material misstatements.
paragraph 10. In paragraph 15 of ISA 240, The Auditor's Responsibilities
regarding audit fraud
financial statements "contains recommendations as to whether
that such a discussion focuses on exposure
the entity's financial statements material misstatements
cause of fraud

17. Answers

1. B) This International Standard on Auditing (ISA) specifies the responsibilities
auditor for planning the audit of financial statements. This standard applies to
to repeat audit engagements. Additional notes are presented separately,
relating to a first-time audit engagement.
2. A) The purpose of the auditor is to plan the audit in such a way that
to be carried out effectively.
3. A) The auditor should include in the audit documentation:
<1>ISA 230 "Audit Documentation"
(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
the audit strategy or plan for the audit to be performed and the reasons for these changes
Additional Considerations for First-Time Audit Engagements
4.A) (a) carry out the procedures required by ISA 220 in relation to accepting a relationship with
the client and this audit engagement;
(b) share information in order to comply with relevant ethical requirements
with a predecessor auditor if there has been a change of auditor
5. Both options are correct

The International Standards on Auditing (ISA) provide uniform basic principles that should be followed by all auditors in the process of their professional activity... 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 the audit are given due consideration.

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

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, and in allocating work to project team members.

Facilitates the direction and supervision of the work of the project team members, 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 to initial stage current audit agreement:

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, 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 the ethical requirements that are relevant in the circumstances.

The nature and scope of the planning work varies according to size and complexity organizational structure of the entity, the past experiences of key project team members associated 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 activities 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, issues such as:

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

Gaining general knowledge about the regulatory framework applied in relation to the subject, and about 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.

Date of publication: 14.02.2019

Date of change: 14.02.2019

Attached file: docx, 52.56 kB

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" General Objectives of the Independent Auditor and Conducting an Audit in Accordance with International Standards on Auditing. " 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 deals with repeat audit engagements. Separately, additional remarks related to the audit engagement performed for the first time are presented. ? Planning role and timing 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 and manage the audit engagement 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 mitigate anticipated risks, and in assigning work to them; facilitates the direction and control of the audit team members, as well as the analysis of their work; where applicable, 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 need communication ; (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 applicable, 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)? ? ? ? ? ? ? ? ? ? ? ? ? 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); (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) 10.? ? ? ? ? ? ? ? ? ? ? ? ? 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 initiating 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)? ? ? ? ? ? ? ? ? ? ? ? ? If there has been a change of auditor, in compliance with relevant ethical requirements, communicate with the predecessor auditor (see paragraph A20). ***? Application guide 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; getting general view O 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 complete 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 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.? ? ? ? ? ? ? ? ? ? ? ? ? Provided that the audit risk assessment procedures are followed, 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 the inventory of 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 an overall 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 a small engagement team, it is easier to coordinate joint work its members and organize information interaction between them. ? Development of an overall audit strategy for the audit being conducted 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 short 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 a well-documented strategy. audit of a current audit engagement, if the memorandum covers the matters listed in paragraph 8. Outline of the audit to be conducted (Ref: Para. 9) A12.? ? ? ? ? ? ? ? ? ? ? ? ? The audit plan contains more detailed description rather than an overall strategy, since it specifies the nature, timing and extent of audit procedures performed by members of the engagement team. 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 from 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 conduct of audits and for reviewing the results of audit work. 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 audit judgments. 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 the key decisions that are considered necessary to properly plan the audit and communicate significant matters to the engagement team. For example, the auditor might summarize the overall audit strategy in the form of a memorandum that contains key decisions on the scope, timing, and order 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. The documentation also serves as evidence of proper planning of the audit procedures, which can be reviewed and approved prior to performing these procedures. The auditor may use standard audit programs or checklists that are 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. Specifics of small organizations A19.? ? ? ? ? ? ? ? ? ? ? ? ? As noted in paragraph A11, an appropriate short memo can serve as documenting small organization audit strategies. Standard audit programs or checklists (see paragraph A17) may be used in developing the audit plan, based on the assumption that there are few appropriate audit plans. control activities what is most likely to happen in a small organization, provided such programs or schedules are used based on the specific circumstances of the audit engagement, including the auditor's risk assessment. 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, bringing these matters to the attention of those responsible for corporate governance as well as the impact of these issues on the overall audit strategy 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 detailed plan audit. The examples provided cover a wide range of issues that are applicable to many audit engagements. While some of the issues below may be included in the requirements of other ISAs, not all of these issues remain relevant for every audit engagement, and their 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 audits 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; availability of service in the organization internal audit and, if available, considering in what areas and to what extent the results of this service can be used for the purposes of the audit, when the nature and extent 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 staff and client data Reporting objectives, audit timing, and communication patterns: the organization's reporting calendar, for example, interim and postponement; 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, 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 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 the audit. Material factors, preliminary engagement work and information obtained in the course of other engagements: 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; preliminary identification of 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; 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 the provision of 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, and 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 legal framework Nature, timing and resources: Selection of audit team members (including, where appropriate engagement quality assurance reviewer) and assignment of responsibilities among them, including assigning more experienced engagement team members to areas with a higher risk of material misstatement; budgeting the engagement, including setting the amount of time that needs to be allocated to work on topics areas where a higher risk of material misstatement is possible. © 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).

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

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 remarks related to the audit engagement performed for the first time are presented.

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 mitigate anticipated risks, and in assigning work to them;
facilitates 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 will be carried out effectively.

Requirements

Involvement of key members of the audit team

The engagement partner 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

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 for planning 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 completing the engagement;

(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 that are required to be performed in order for the audit engagement to comply with the requirements of the Australian Auditing Standards (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 the nature, timing and extent of the work to direct and control the engagement team members and to verify their performance. (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) if there has been a change of auditor, in compliance with relevant ethical requirements, communicate with the predecessor auditor (see paragraph A22).

Application guidance and other explanatory material

The role and timing of planning(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 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;
getting an overview of legal regulation 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.

Involvement of key members of the audit team(see point 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 work on the assignment(see point 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 complete 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

General audit strategy(see points 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 resolve 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 (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.

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, as changes in one of these documents may lead to the need to make corresponding changes in the other.

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 short 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 a well-documented strategy. audit on a current audit engagement, if the memorandum discloses the matters listed in paragraph 8.

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 registers and subsidiary statements, which also affects the assessment of risks and the nature, timing and extent of audit procedures in response to risks.

A14. Preliminary consideration of audit disclosures helps the auditor to pay due attention and plan sufficient time to study disclosures to the same extent 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 from 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 direction 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 audit judgments. If particularly complex or unusual issues are involved and the audit is conducted by an individual practitioner, it may be prudent to consult with other suitably qualified auditors or a professional audit firm.

Documentation (Ref: Para. 12)

A18. The overall audit strategy documentation is a record of the 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. The documentation also serves as evidence of proper planning of the audit procedures, which can be reviewed and approved prior to performing these procedures. The auditor may use standard audit programs or checklists that are 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 short memorandum can serve as a documentation 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 is 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 performed 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:

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.

Features of the audit engagement

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 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 audits 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 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 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;
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 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 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).

Topic: ISA 300 Planning an Audit of Financial Statements

University: Financial University

Year and city: Moscow 2016

ISA 300 Planning an Audit of Financial Statements. 3

LIST OF USED LITERATURE .. 13

ISA 300 Planning an Audit of Financial Statements

On the territory of the Russian Federation, international audit standards are applied, adopted by the International Federation of Accountants and recognized in the manner established by the Government of the Russian Federation, which complies with the requirements of the Federal Law "On audit activity"(No. 307-FZ of 12/30/2008 (as revised on 10/02/2016).

Moreover, since 2017, to conduct an audit of accounting (financial) statements drawn up for any reporting periods, it will be necessary to apply international auditing standards introduced by the Orders of the Ministry of Finance of Russia dated 24.10.2016 No. 192n, dated 09.11.2016 No. 207n, while if the contract for the audit of the accounting (financial) statements of the organization was concluded before 01.01.2017, the audit can conducted in accordance with the standards in force prior to the entry into force of these ISAs.

Note that the federal rules (standards) of auditing (FPSAD) were previously developed in accordance with ISA, but much more slowly than the process of improving the ISA itself took place. So, 24 FPSAD out of 38 currently in force correspond to the outdated edition of ISA, which was in effect for audits of statements for periods beginning on or after 15.12.2004, nine - in effect for audits of statements for periods beginning on or after 15.12.2009. , five - effective for reporting periods beginning on or after 15.06.2005. or 15.12.2006.,.

Recall that at present, the ISA set of documents consists of 49 Standards, including the quality control standard, audit standards, review standards, standards for other assurance assignments, and standards for providing related services, .

The procedure for planning an audit is determined by ISA 300 "Planning an audit of financial statements" and FSAD No. 3 "Planning an audit".

ISA 300 "Planning an audit of financial statements" includes: introduction, planning the audit, plan (audit program) governs the planning of the audit of financial statements. The need for planning is due to the purpose of the effectiveness of the audit,.

In addition, we note that one of the main practical advantages of ISA is the presence of cross-references, included in the texts of ISA themselves or in footnotes in them, which allow the auditor to build the order of application of a particular standard during the audit, while in FPSAD cross-references absent, since in regulatory documents operating in the Russian Federation, it is not accepted to make cross-references.

As a rule, each FPSAD contains requirements and recommendations related to any one audit area, without specifying the order of its application during the engagement, for example, separate standards governing documentation, sampling, analytical procedures, external confirmations, related parties, materiality and others. areas of audit. In ISA, the link to the time of the auditor's application of a particular standard is implemented through cross-references in them (figure):

Rice. Risk-based approach when planning an audit of financial statements (based on ISA 300 and other ISA),

The figure schematically illustrates the requirements and recommendations of which international standards, except for ISA 300 "Planning an Audit of Financial Statements", should be performed during audit planning.

Following a risk-based approach allows auditors to conduct audits more effectively and efficiently. The auditor's understanding of the risks economic activity the audited entity significantly increases the likelihood of identifying the risks of material misstatement of information in the reporting. Before the risk-based approach was reflected in the ISA, auditors, based on their professional judgment, as a rule, selected the areas of reporting that are the most significant from a quantitative point of view for verification, which was fundamentally wrong, since it always existed and exists. the probability of violation of the "completeness" precondition, i.e. reflection not in full of balances on accounting accounts, business transactions and disclosures. As a result, the areas not selected for verification due to the insignificance of their values valuation could contain a material misstatement that was overlooked by the auditor.

ISA 300, Planning an Audit of Financial Statements, sets out the scope of that ISA, which states that this standard refers to re-engagement, in addition, additional notes are presented separately related to the first audit engagement. The role (development of a general audit strategy according to the assignment and preparation of an audit plan), planning time, date of entry into force (from 15.12.2009) are indicated.

This ISA reflects the following objective - the objective of the auditor is to plan the audit in such a way that it will be carried out effectively.

Requirements are listed, incl. auditor's actions preliminary work on assignment; the planning activities are listed; documentation, incl. references are given to ISA 230 "Audit Documentation", ISA 220 "Quality Control in an Audit of Financial Statements".

Application guidance and other explanatory material is provided, and an Appendix is provided - Considerations for developing an overall audit strategy.

Note that ISA 300 "Planning an audit of financial statements" is set out on 12 pages, it corresponds to the Russian auditing standard, namely, the rule-standard of auditing activities 3 "Audit planning", which is set out in just 2 pages. Those. the results of a formal comparison of these standards show that the Russian analogue of the international standard is much more laconic, as a result it is six times shorter. In order to understand the reasons for this difference, let us compare the structure and content of these standards in the form of an analytical table (table),:

Comparison of planning standards according to ISA 300 and PSAD 3

ISA 300, Planning an Audit of Financial Statements		PSAD 3 "Audit Planning"
Introduction	Application area	Introduction
	The role and timing of planning
	Effective date

Requirements

	Planning activities	Work planning
	Documentation

		Overall audit plan
		Audit program
		General plan and audit program changes
Practical use and other explanatory material	The role and timing of planning
	Engaging key members of the audit team
	Preparatory activities for the assignment
	Planning activities
	Documentation

	Job parameters
	Reporting Objectives, Audit Timing and Communication Patterns
	Material facts, assignment preparatory activities and information obtained in the course of other assignments
	Nature, timing and amount of resources

A more thorough study of the texts of both standards, in fact, makes it possible to assess the qualitative differences between standardization according to international and domestic rules. They boil down to the fact that the domestic document is a framework, and the international one contains a clear detailed instructions, describing many nuances, sequential actions linked to specific clauses of other standards, the requirements of which must be fulfilled in one case or another.

ISA 300, Planning an Audit of Financial Statements, sets out the development of an overall strategy and detailed approach to the expected nature, timing and extent of the audit in order to reduce audit risk to an acceptably low level. Proper planning ensures that all important audit issues are given due consideration and potential problems are identified and addressed. The planning process involves those in charge of the audit engagement. The audit must be carried out efficiently and in a timely manner.

Planning the audit engagement is continuous process... Preliminary planning should ensure that the auditor has considered various events and circumstances that could adversely affect the ability to perform the audit in such a way as to reduce audit risk to an acceptably low level. Based on the results of preliminary planning, an overall audit strategy is developed to help the auditor determine the nature, timing and amount of resources required to fulfill all the conditions of the audit engagement.

After the audit strategy is adopted, the audit tactics are developed in the form of a detailed plan (program). In accordance with ISA 300 "Planning an Audit of Financial Statements", planning an audit allows you to:

Outline the most important audit areas;

Effectively distribute the scope of work among the auditors;

Determine the size of the entity, the complexity of the audit;

Acquire knowledge about the client's business;

Identify significant events, transactions affecting the financial statements.

The form and content of the audit plan may vary depending on the size of the business of the economic entity; the complexity of the audit; specific techniques and technologies used by the auditor in the audit process. The auditor may discuss the elements of the audit plan and specific audit procedures with the client's management in order to coordinate with the client's staff to ensure the effectiveness of the audit. However, the auditor retains responsibility for the audit plan and program.

According to the requirements of ISA 300 "Planning an Audit of Financial Statements", the audit plan contains the following sections:

Understanding of business: reflects the general economic factors and conditions in the industry that affect the business of the entity; important characteristics of the entity, its business, results of financial and economic activities and requirements for its reporting, including changes that have occurred since the date of the previous audit; general level of management competence;

Understanding the environment and internal control: accounting policies and their changes; the impact of new accounting or auditing regulations; the auditor's accumulated knowledge of SBU and ICS, as well as the appropriate attention that is supposed to be paid to control tests and substantive procedures;

Risk and materiality: expected risk assessments of the control system, as well as the identification of important areas of the audit; setting materiality levels for audit purposes; the possibility of material misstatements, including past periods, or fraud; identifying complex areas of accounting, including those related to valuation knowledge; a possible shift in emphasis towards specific areas of the audit; influence information technology for audit; the work of the internal audit unit and its expected impact on external audit procedures;

Nature, timing and scope of procedures: engaging other auditors in the audit of components such as branches, subsidiaries and divisions;

Coordination, direction of work. supervision and analysis of it: involvement of experts;

Other aspects - for example, the need for staff; the possibility that the going concern assumption may be questioned, etc.

Comparative analysis International Auditing Standards ISA 300 "Planning an Audit of Financial Statements" with Russian standard audit activity of FSAD No. 3 "Audit planning" is presented in the table:

In fairness, it must be admitted that the third generation federal standards (FSAD) are closer in spirit to international standards, but even they are not specific enough and are often declarative in nature. However, the quality of the text in Russian performance has noticeably deteriorated in comparison with the standards of the first and second generations. For those involved in audit methodology, these are known facts.

In conclusion, we note that the transition to ISA in Russian Federation is an important step towards improving the efficiency and quality of audits conducted by Russian auditors, as well as increasing confidence in audit results from users of financial statements and society as a whole.

With all the understandable difficulties and costs of the transition period, which for many Russian auditors is likely to be in 2017, the numerous advantages of using ISA by Russian auditors are beyond doubt. Such advantages are both general conceptual and purely practical. And while the conceptual advantages of using ISA are, rather, the subject of interest of users, the audit profession and society as a whole, practical advantages, only some of them fully "crystallize" and become obvious to Russian auditors during the performance of specific audit engagements according to ISA and as knowledge and experience of working with ISA is accumulated.

LIST OF USED LITERATURE

1. "On audit activity" the federal law from 12/30/2008 No. 307 - FZ (as amended on 02.10.2016).

2. On approval of the Federal rules (standards) of auditing ”. Resolution of the Government of the Russian Federation of 23.09.2002, No. 696 (as amended on 22.12.2011).

3. International Auditing Standard 300 "Planning an Audit of Financial Statements" (put into effect in the Russian Federation by Order of the Ministry of Finance of Russia dated October 24, 2016 No. 192n).

4. Baranenko S. P., Busygina A. V. Problems and Prospects for the Implementation of International Financial Reporting Standards in Russia // Economy and Society: Modern Development Models, 2014, No. 8, pp. 70 - 82.

5. Gaidarov K.A. Comparative analysis of federal standards of auditing and ISA: issues of quality control of audit organizations // Auditor, 2014, No. 6. URL: http://base.garant.ru/57569142

6. Zubova E.V. M.E. Nadezhdina Advantages of using international auditing standards // Auditors' statements, 2016, No. 11. - P. 9 - 12.

7. Kozmenkova S.V., Kemaeva S.A. Audit: problematic issues and ways of development // International accounting, 2015, No. 3. - P. 24 - 27.

8. Serebryakova T.Yu. International auditing standards as an object of research // International accounting, 2015, No. 4. - P. 16 - 22.

If the Test, in your opinion, is of poor quality, or you have already met this work, let us know.

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;

Skipping FHD facts;

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, the auditor is required to report to law enforcement.

The auditor may withdraw from the engagement if there is a serious misstatement or 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 is obliged to 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 entire audit due to possible changes in various circumstances; changes should be documented.

Msa 300 audit planning. Planning an audit of financial statements in accordance with international auditing standards

ISA 300 basics

Terms

Scope of this ISA

Auditor's Purpose, Role and Timing of Audit Planning

Audit Documentation for ISA 300

Engagement of key members of the audit team and Preparatory activities for the engagement

Audit plan

Management, control and review

10. Changes in planning decisions during the audit

11.

12.1 Scope of this ISA 300

13.2 Purpose of ISA 300

14. 3. Documentation

15. 4. Before starting the audit for the first time, the auditor should do the following:

16. 5. Participation of key members of the audit team

17. Answers

Introduction

Scope of this ISA

The role and timing of planning

Effective date

Target

Requirements

Involvement of key members of the audit team

Preliminary work on the assignment

Planning works

Documentation

Additional Considerations for First-Time Audit Engagements

Application guidance and other explanatory material

Planning works

Documentation (Ref: Para. 12)

Appendix

Considerations for developing an overall audit strategy

Features of the audit engagement

Reporting Objectives, Audit Timing and Communication Patterns

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:

ISA 300 Planning an Audit of Financial Statements

LIST OF USED LITERATURE

8. Msa 300 - planning an audit of financial statements

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