Audit Plan - 1
Executive summary
The aim of this report is to develop an audit plan using the 2007/2008 annual reports of the WesFarmers. This report will provide an understanding of the underlying concepts of an overall audit strategy. This strategy will bring forward the direction and scope of the WesfFarmers audit plan. This report will address five major points these are as follows:
• Understanding the entity and its environment
• Making preliminary judgements about materiality levels
• Considering the audit risk
• Understanding internal control structure
• Developing preliminary audit strategies for significant assertions
The main source used in planning the audit is the WesFarmer’s annual financial report together with the relevant auditing standards:
• ASA300 - Planning an Audit of a Financial Report
• ASA315 - Understanding the entity and its environment and assessing the risk of material misstatement
• And ASA 320- Materiality and audit adjustments
In order to complete the planning of the audit the following assessments of the major statements were undertaken these are as follows, Income Statement, Balance sheet, Cash flow statement and changes in equity statements.
Introduction
In order to prepare an audit plan in a timely and efficient way, it is essential that a proper strategy is put in together. There are many areas that need to be addressed thoroughly to ensure that the correct outcomes are established.
The following are the key areas discussed in the report:
Initially the auditor must first understand the entity and its environment. Auditor can find this information by analysing the entities internal and external information. In the following procedure the auditor will assess any risks which might influence his/ her reporting issues and application of substantive procedures.
Further, the auditor must make preliminary judgements about the materiality levels the auditor must analyse the entities financial controls and the class of
The aim of this report is to develop an audit plan using the 2007/2008 annual reports of the WesFarmers. This report will provide an understanding of the underlying concepts of an overall audit strategy. This strategy will bring forward the direction and scope of the WesfFarmers audit plan. This report will address five major points these are as follows:
• Understanding the entity and its environment
• Making preliminary judgements about materiality levels
• Considering the audit risk
• Understanding internal control structure
• Developing preliminary audit strategies for significant assertions
The main source used in planning the audit is the WesFarmer’s annual financial report together with the relevant auditing standards:
• ASA300 - Planning an Audit of a Financial Report
• ASA315 - Understanding the entity and its environment and assessing the risk of material misstatement
• And ASA 320- Materiality and audit adjustments
In order to complete the planning of the audit the following assessments of the major statements were undertaken these are as follows, Income Statement, Balance sheet, Cash flow statement and changes in equity statements.
Introduction
In order to prepare an audit plan in a timely and efficient way, it is essential that a proper strategy is put in together. There are many areas that need to be addressed thoroughly to ensure that the correct outcomes are established.
The following are the key areas discussed in the report:
Initially the auditor must first understand the entity and its environment. Auditor can find this information by analysing the entities internal and external information. In the following procedure the auditor will assess any risks which might influence his/ her reporting issues and application of substantive procedures.
Further, the auditor must make preliminary judgements about the materiality levels the auditor must analyse the entities financial controls and the class of
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