Planning is not a discrete phase of an audit, but rather a continual and iterative process that often begins shortly after the completion of the previous audit and continues until the completion of the current audit enga

As per Standards of Auditing SA 300 issued by the Institute of Chartered Accountants of India, 'Planning an Audit of Financial Statements', planning is not a discrete phase of an audit, but rather a continual and iterative process that often begins shortly after (or in connection with) the completion of the previous audit and continues until the completion of the current audit engagement. Planning, however, includes consideration of the timing of certain activities and audit procedures that need to be completed prior to the performance of further audit procedures. E.g. planning includes the need to consider, prior to the auditor's identification and assessment of the risks of material misstatement, such matters as: The analytical procedures to be applied as risk assessment procedures. Obtaining a general understanding of the legal and regulatory framework applicable to the entity and how the entity is complying with that framework. The determination of materiality. The involvement of experts. The performance of other risk assessment procedures. Planning an audit involves establishing the overall audit strategy for the engagement and developing an audit plan.