Audit planning

​​Planning for an audit begins by developing the audit planning memorandum or the overall audit strategy. 

​​In the case of recurring audits, the auditor may decide not to send a new engagement letter or other written agreement each period. 

​​International Standard on Auditing (ISA) 300 Planning an Audit of Financial Statements, provides guidance to assist auditors in planning an audit. 

​​Highlight three shortcomings of using standardised audit programs.

​​Wakulima Supermarket Ltd. has appointed your firm as their external auditors for the current financial year. One of the company's directors feels that there is no need to undertake an interim audit during the year. He argues that an interim audit is only a way of increasing your firm's audit fees and adds no value to the company. 

International Standard on Auditing (ISA) 315 - Identifying and assessing the risks of material misstatement through understanding the entity and its environment, sets out matters that should be documented during the planning stage of an audit.