## Documentation of Audit Planning

The auditor must maintain formal documentation of both the Overall Audit Strategy and the Audit Plan as a permanent record of planning decisions.

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### A. Overall Audit Strategy Documentation

The auditor records:

Key decisions considered necessary to properly plan the audit
Significant matters to be communicated to the engagement team

### B. Audit Plan Documentation

The auditor records the planned Nature, Timing, and Extent of:

Procedure Category	Abbreviation
Further Audit Procedures	FAP
Risk Assessment Procedures	RAP
Other Audit Procedures	—

> All planned procedures must be capable of being reviewed and approved prior to their performance.

### C. Documentation of Significant Changes

When significant changes are made to the overall audit strategy or audit plan:

What to Document	Detail
What changed	Revised audit strategy / audit plan
Why it changed	Reasons for change
How it responds	Reflects response to the significant changed circumstances

> Documentation explains why changes were made — not just that they were made.

Worked example

### Example 1

Example — Change in Strategy during Audit:

An auditor initially plans to rely on internal controls (low control risk). Mid-audit, a significant deficiency is discovered in the client's IT controls. The auditor must:

1. Revise the Overall Audit Strategy to adopt a substantive approach

2. Update the Audit Plan — increase extent of substantive FAP

3. Document: (a) the original strategy, (b) the revised strategy, (c) the reason (IT control deficiency discovered), and (d) how the revision responds to the changed circumstances.

### Example 2

Example — Audit Plan Documentation for Debtors:

For the debtors balance, the Audit Plan records:

Nature: External confirmation (positive form) + analytical procedures
Timing: Confirmations sent 2 weeks before year-end; reviewed post year-end
Extent: Top 20 debtors by value + random sample covering 70% of balance

This is documented before procedures are performed so the engagement partner can review and approve.

⚠️ Common exam mistakes

Confusing the Overall Audit Strategy (high-level scope decisions) with the Audit Plan (specific procedure details) — they are separate documents with different levels of detail.
Failing to document significant changes and their reasons — simply updating the plan without recording what changed and why violates SA 300 requirements.
Treating documentation as a post-audit formality rather than a pre-performance requirement — procedures should be documented and approved before they are performed.
Omitting communication of significant matters to the engagement team when updating strategy — documentation is not just a record; it serves as a communication tool.

Bare-Act text SA 300, Paragraph 45 · SA 300 – Planning an Audit of Financial Statements (ICAI) · click to expand

The auditor shall document: (a) the overall audit strategy; (b) the audit plan; and (c) any significant changes made during the audit engagement to the overall audit strategy or the audit plan, and the reasons for such changes.

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Documentation of Audit Planning – Overall Strategy and Audit Plan

Worked example

⚠️ Common exam mistakes