ISA 300 – Planning an Audit of Financial Statements


International Standard on Auditing 300: Planning an Audit of Financial Statements requires auditor to plan the audit engagement. This involves setting up audit strategy and then devising a plan in the light of strategy. As the engagement progress, auditor may feel the need to update, extend or change the planned procedures. How this is done and what needs to be done in this case is discussed in ISA 300.

Executive Summary

Auditor is required to plan the audit by developing an audit strategy to guide the plan itself. Audit plan is necessary for number of reasons of which the foremost is to achieve audit efficiency and effectiveness. Audit plan involves planning risk assessment procedures, further audit procedures and other audit procedures to obtain sufficient appropriate audit evidence. During the audit if auditor concludes that initial plan requires alteration then auditor shall consider revising audit strategy as well if needed. Change in audit plan involves change in the scope timing or extent of planned audit procedures. Auditor shall document the audit plan and any changes thereto.