Question

discuss the role of the audit planning process, including how auditors assess risk. Do not disclose the name of the organization.

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Answer 1

- The role of audit planning process: The role of audit planning process a very important to an organization to done its audit. At the begining of audit process the auditon should have to understand the nature of the client and the business, making risk and materiality assesment, determining an audit strategy and determining the type of the evidenee to colleet based on the level of ousks. 1 The role of the audit planning process are - a w It helps to avoid misundenstanding with the client and make a suitable relationship among the client and auditon to done autif easily

f Kill I of Audit risk planning process identify the coreas of Material misstatements. Till some times audit cost will very hugle. Audit planning process help to keep this. audit east low. Live It also helps to design audit procedure to address the risk of audit and to obtain sufficient evidence. Su The very important benefit of this process is - it helps the auditon to Canny out the audit work very smoothly and in a well mannen.

A How auditon assess risk? while performing an audit, the auditon -point out that financial statement are materially conneet or not. The financial statement audit is only finding out when the financial steelements are materially connect. So there is very much nish on this procedure s and An auditon use nick assessment procedure to assess the risk of matorial misstatement exist. Material misstatement is coise due to Ennon and fraud. Here the auditor collect evidence from client and other workers and as influenees the firm's plans negarding what audit eridance as necesscony and which personnel will be assigned to the job Auditon use more and more involved audit mish procedures for higher misks. An auditon figure out the mish level by Integniewing employees, perfomming analytical procedure inspecting company recounts and observing employees at work