## Audit Planning — Benefits and Pre-Planning Considerations (SA 300)
### Why Plan?
Adequate planning ensures the audit is conducted effectively, efficiently, and with appropriate focus. SA 300 – Planning an Audit of Financial Statements governs this area.
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### Six Key Benefits of Adequate Audit Planning
1. Appropriate attention — Directs effort to important audit areas.
2. Timely problem resolution — Identifies and resolves potential issues early.
3. Effective organization — Ensures the engagement is managed efficiently.
4. Right team composition — Selects members with capabilities matched to anticipated risks and assigns work appropriately.
5. Effective supervision — Facilitates direction, supervision, and review of team members' work.
6. Coordination — Assists in coordinating work done by auditors of components and experts.
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### Matters to Consider BEFORE Risk Identification and Assessment
Planning includes completing certain activities before the auditor formally identifies and assesses risks of material misstatement:
1. Analytical procedures to be applied as risk assessment procedures.
2. Legal and regulatory framework — obtaining a general understanding and how the entity complies.
3. Determination of materiality.
4. Involvement of experts.
5. Other risk assessment procedures to be performed.
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### Planning the Timing of Communications
Ascertaining the reporting objectives of the engagement helps plan the timing of audit procedures and the nature of communications:
- Entity's timetable for reporting
- Meetings with management to discuss nature, timing and extent of audit work
- Expected type and timing of auditor's reports
- Communications on status of audit work throughout the engagement
- Nature and timing of communications among engagement team members (team meetings, reviews)