auditplan

An audit plan is a formal document that outlines the scope, objectives, timing, and procedures for an audit engagement. It provides a structured framework to guide auditors in planning and performing work to obtain sufficient evidence for conclusions about financial statements, operations, or compliance.

Its purpose is to ensure a risk-based, methodical approach and efficient use of resources. The plan identifies key risks, materiality thresholds, and the overall audit strategy, and is prepared in line with applicable professional standards and regulatory requirements.

Core components include objectives, scope, subject matter and criteria, risk assessment, materiality levels, overall approach, planned procedures, data and evidence requirements, timelines, roles, and reporting arrangements. The plan also covers logistics and resource needs.

Development involves early risk identification, understanding the control environment, setting materiality, selecting procedures, and establishing a preliminary schedule. The plan is a living document that is updated as risks evolve or findings emerge.

An audit program contains the specific procedures that implement the plan. The plan provides the strategy, while the program translates it into actions, including sampling, tests of controls, and substantive procedures.

Plans vary by engagement type—external financial statement audits, internal audits, or compliance audits—each with tailored content. Annual or multi-year plans may be updated to reflect changes in risk or scope.

Audit plans are documented and reviewed by the engagement team and, where appropriate, by the audit committee or governance body. They support independence, quality, and accountability.