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    Audit Planning Memorandum

    Uploaded by

    kellychuunga
    This planning memorandum summarizes the audit of an entity for an accounting period. It provides background information on the entity, including organizational structure, relevant laws and regulations, operations, size, financial performance, reporting requirements, and changes since the prior audit. It identifies the audit team and timelines. Key areas for audit include following up on prior issues and assessing new risks. The memorandum also reviews the entity's control environment, internal audit function, use of computer systems, and going concern.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd

    Audit Planning Memorandum

    Uploaded by

    kellychuunga
    15K views7 pages
    This planning memorandum summarizes the audit of an entity for an accounting period. It provides background information on the entity, including organizational structure, relevant laws and regulations, operations, size, financial performance, reporting requirements, and changes since the prior audit. It identifies the audit team and timelines. Key areas for audit include following up on prior issues and assessing new risks. The memorandum also reviews the entity's control environment, internal audit function, use of computer systems, and going concern.

    Original Description:

    Audit Planning Memorandum for Regularity audits.

    Copyright

    © Attribution Non-Commercial (BY-NC)

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    This planning memorandum summarizes the audit of an entity for an accounting period. It provides background information on the entity, including organizational structure, relevant laws and regulations, operations, size, financial performance, reporting requirements, and changes since the prior audit. It identifies the audit team and timelines. Key areas for audit include following up on prior issues and assessing new risks. The memorandum also reviews the entity's control environment, internal audit function, use of computer systems, and going concern.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    15K views7 pages

    Audit Planning Memorandum

    Uploaded by

    kellychuunga
    This planning memorandum summarizes the audit of an entity for an accounting period. It provides background information on the entity, including organizational structure, relevant laws and regulations, operations, size, financial performance, reporting requirements, and changes since the prior audit. It identifies the audit team and timelines. Key areas for audit include following up on prior issues and assessing new risks. The memorandum also reviews the entity's control environment, internal audit function, use of computer systems, and going concern.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
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    You are on page 1of 7

    Planning Memorandum

    1.0 PLANNING MEMORANDUM


    Entity File ref.

    Audit assignment Accounting period

    Audit objective(s)

    Audit directorate/section Responsible auditor/Team leader

    Prepared by/ Reviewed by Approved by


    sign/date Sign/date Sign/date
    (Team leader) (Deputy director) (Director)

    Comments Comments

    Proposed key audit areas and reasons for selection


    Follow up of unresolved previous issues (Ref 1.12) Ref.doc

    New issues Ref.doc

    Audit approach or strategy and Scope

    Proposal for IT Audit section to be involved?


    Yes/No

    For proposed materiality levels see the Materiality Assessment form.

    Version 17.10.05 1
    Planning Memorandum

    KNOWLEDGE OF THE BUSINESS/ENTITY

    1.1 General Background

    Name of the auditee


    Head:
    Postal address of auditee:
    Physical address of auditee
    General telephone no.:
    General fax number
    Pension Contributions no.:
    VAT no:
    PAYE no:
    Banking Details:
    Bank name Type of Account Bank Account No

    Other relevant information (if applicable)

    1.2 Relevant Contact Persons


    Name Rank and Dept Office Contact
    location number

    1.3 Enabling Acts Establishing the Entity

    1.4 Other Regulatory Framework


    Rules and Regulations:

    Accounting Policies and procedures:

    Accounting Framework:

    1.5 Business Operations of the Entity

    Version 17.10.05 2
    Planning Memorandum

    Nature of the entity’s business activities:

    1.6 (a) Size of Entity


    Total Staff Composition:
    Establishment:
    Actual:
    Variance:

    Establishment
    No. of Departments:
    No. of Provincial Offices:
    No. of District Offices:

    1.6 (b) Size of Entity (Financial)

    Expenditure budget
    Original budget Provision:
    Supplementary Provision:
    Total Authorised Provision
    Actual Expenditure:
    Variance:

    Funds
    Actual Funds Released:
    Actual Expenditure:
    Variance:

    Income
    Total Income Budget:
    Actual Collections:
    Variance:

    Reasons for variances:

    1.7 Organisational Structure (Obtain From the Client. This will direct the
    choice of audit areas)
    The structure will include: Ref.doc
    - Lines of authority and responsibilities
    - Income and expenditure functions
    - Departments
    - Account Areas (budget as in Estimates of
    Revenue/Expenditure
    - Ministers’ briefs

    Version 17.10.05 3
    Planning Memorandum

    - Budget Speech

    1.8 Operating Management


    Ref.doc
    Has the entity issued a strategic plan/business plan?
    (indicating for instance goals, mission, vision and performance
    indicators)

    Experience and reputation of staff:

    Turnover of key staff and staff in general:

    1.9 Financial Performance


    Financial management and budgetary control: Ref.doc

    Unconstitutional and Unauthorised expenditure:


    (Examine and analyse financial statements, board minutes and
    management reports)

    1.10 Reporting Requirements


    Appropriation/Financial Statements by the auditee to be Ref.doc
    included in the annual reports to be presented to Parliament

    Other reports as required by Act (if applicable)

    1.11 Changes With Client Since Last Audit (e.g structure, accounting
    policies, enabling, Acts, management etc)
    Ref.doc

    1.12 Follow-Up of Prior Year Reports

    Version 17.10.05 4
    Planning Memorandum

    Unanswered in Management Letters/ Inspection Reports/ Audit Ref.doc


    Reference Sheets

    Unresolved issues in Annual and other Audit Reports

    Unresolved issues in Public Accounts Committee Reports

    Unresolved issues in Treasury Minutes/ Action Taken Reports

    1.13 Systems Documentation Conclusion


    (See1.3 Systems documentation form) Ref.doc

    1.14(a) Are there any computerised systems that produce data that
    affects the accounts related to the audit assignment?
    List relevant systems and describe its main functions Ref.doc

    1.14(b) Has the relevant systems been subject to IT audit before?


    List the main conclusions Ref.doc

    1.15 Control Environment Conclusion


    (See 1.4 Control environment questionnaire) Ref.doc

    1.16(a) Is an internal audit function established?


    Ref.doc

    Version 17.10.05 5
    Planning Memorandum

    1.16(b) has the internal audit produced any audit reports relevant to this
    assignment?
    List the reports Ref.doc

    1.16 (c) evaluation of internal audit functions


    (See 1.5 Evaluation of Internal Audit questionnaire) to be filled Ref.doc
    in if audit work will be based on internal audit work

    1.17(a) Is there an audit committee?


    Ref.doc

    1.17(b) Are there established procedures to guide its operations and


    have they been followed?
    Ref.doc

    1.18 Going Concern Conclusion


    Ref.doc
    (See 1.6 Going Concern Questionnaire)

    1.19 Conclusion on Risk Assessment


    Ref.doc
    (See 1.1 Risk Assessment Questionnaire)

    Version 17.10.05 6
    Planning Memorandum

    2. AUDIT ASSIGNMENT MANAGEMENT PLAN

    2.1 Personnel
    Audit team Name Working days planned
    Planning Exec. Report
    Director

    Team Leader
    Rest of Team

    TOTAL MANDAYS

    2.2 OAG budget implications

    Budget item Account Amounts planned

    2.3 Time schedule/milestones for the assignment


    Milestone Date planned
    Submission of planning memorandum
    Audit programmes finalised
    Submission of file to director for review
    Draft report
    Updated risk assessment form
    Audit assignment management report

    Version 17.10.05 7

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