Planning stage

During the audit planning stage an audit approach is developed with aim of gathering appropriate, sufficient and reliable evidence for achieving the aim of the audit. Audit methodology used by the State Audit Office provides a single approach to the audit planning process which ensures performance of audits according to the same auditing standards and reaching the stated assurance level.

During audit planning stage the auditor obtains an understanding on operations of the audited entity and its control systems, as well as determines materiality and identifies material risks. Audit procedures are evaluated based on professional judgement, including assessment of risks of material misstatements whether due to fraud or errors. In making those risk assessments, auditor considers the existing system of internal control in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the efficiency of the entity’s internal control. The management of the audited entity is responsible for development and maintenance of efficient system of internal control.

This phase includes preparation of audit plan and detailed audit programs as well as allocation of tasks to the member of audit team and determination of time resources.