chapter 6 - Audit Planning

Question 1

what is the purpose of an audit?

Answer 1

The objective of the auditor is to plan the audit so that it will be performed in an effective manner.

Question 2

Benefits of planning an audit

Answer 2

 Devotes appropriate attention to important areas of the audit.
 Identifies and resolves potential problems on a timely basis.
 Organises and manages the audit so that it is performed in an effective and efficient manner.
 Selects team members with appropriate capabilities and competencies.
 Directs and supervises the team and reviews their work.
 Effectively coordinates the work of others, such as experts and internal
audit.

Question 3

professional judgement

Answer 3

Professional judgment is the application of relevant training, knowledge and experience in making informed decisions about the courses of action that are appropriate in the circumstances of the audit engagement.