The Audit plan describes the processes and activities that are to be carried out in connection with a particular audit and for improving the quality of audit. For an effective audit, the availability of resources and ski

The process of audit planning should include the following elements: The purpose and objectives. Legal framework under which the audit is being conducted. Significant areas and issues involved. Process and technique to be adopted. Check points activities. Allocation of work contents amongst the staff. Time schedules for completion of various tasks/phases. Determining time lines for submission of draft report, discussion thereon with the auditee and submission of final report. Areas to be classified on "Risk" criteria to allocate suitable resources. Determining the extent of detailed examination and coverage in terms of volume. Evaluation of internal controls and professional work carried out by other agencies/ experts and placing reliance thereon. Materiality considerations and determining the threshold therefore. Structure, contents of the report.