What is an Audit Plan?

An audit plan states the overall strategy and detailed steps to be followed in the conduct of an audit. The plan includes risk assessment procedures, as well as additional procedures to be followed based on the outcome of the risk assessment. The contents and timing of the plan will vary from year to year, depending on changes in the circumstances of the client.

How to Write an Audit Plan

An audit plan is based on the overriding audit strategy. The plan is then written to ensure that all audit objectives stated in the strategy are successfully addressed. At a more detailed level, the audit plan should cover risk assessment activities, as well as other audit procedures that are needed to comply with the professional audit standards that apply to the engagement.

Advantages of an Audit Plan

By creating an audit plan at the start of an audit, an auditor is in a better position to anticipate problems that may arise during the engagement, while also conducting the audit in an efficient manner. Furthermore, an audit plan helps to maintain control over the costs incurred by the audit team. Finally, it is useful for creating a clear definition of the scope of the engagement, so that audit work does not drift outside of this defined area.