Enumerate any five points that should be considered at the time of audit planning and audit engagement.

Audit planning requires a high degree of discipline on the part of the auditor. In order to make the planning more meaningful, the auditor should take into consideration the following matters in relation to the audit engagement: Preliminary work to be done in addition to the real audit work: This will include such matters as stocktaking, cash count, debtors' circularisation and review of previous year's working papers. This will remind the auditor of those matters brought forward from the previous year and any other points to be resolved in the current year or problems anticipated. Changes in legislation, accounting or any auditing standards or guidelines: The auditor should acquaint himself with all the changes that took place during the year in applicable legislation, accounting and auditing standard. This will help an auditor in carrying out the auditing assignment in a way that meets the legislative requirement. Analytical review of available management accounts and other management information that relate to the accounts: This will assist in establishing valuable ratios and indicators that will guide the auditor. For instance, the computation of the gross profit percentage compared with that of the previous year will provide a good indicator to the auditor of the accuracy and reliability of sales and cost of sales. Changes in the business or management: The appointment of a new finance controller and the establishment of a new business line or the creation of a new branch are significant changes in the circumstances of the company which will necessitate changes in the existing audit plans. There may be similarly changes for which change may be required in audit plan. Changes in the accounting system: The introduction of computers such that when a company introduces significant changes in its operating procedures will require a review and evaluation of the system of internal control. Deadlines established for the submission of audit report: Where a client has set deadlines for its statutory activities such as the annual general meeting, it is important for the auditor to work in line with such programmes. Use of Rotational Testing and Verification: In practice, the auditor may not carry out a hundred percent testing or verification of the client's transactions or segments of the business. Where rotational testing or verification is adopted, it will be necessary for the auditor to determine ahead of the date of the engagement which aspects of the business should be selected for testing or verification. An example of rotational testing could be applied on the client's branches to be visited.