Audit Plan
Client Name:
Accounting Period Ended:
This audit plan template provides an easy to use format that can be used to document
the audit plan for the assignment. It is intended that the template would be used in
conjunction with the Institute of Certified Public Accountants in Ireland publication
“AUDIT WORK PAPERS FOR A NOT FOR PROFIT ENTITY ENGAGED IN COMMUNITY
DEVELOPMENT ACTIVITIES”.
An example audit plan is included in the above publication to illustrate the typical
content of an audit plan for an audit for a not for profit entity.
As it is intended that these work papers will be used on audit assignments of a small
company, it is assumed that the auditor will not place reliance on internal controls and
that consequently control risk is high.
Guide to using the work papers
The name of the firm, client, period end, prepared by and reviewed by can be inserted
in the page header and footer and this detail will then appear on each page printed.
In certain sections of the documents we have included a suggested text (in red text)
that may be appropriate in some assignment cases. The user needs to amend this
text to suit the actual assignment situation faced.
Prepared by:
Date:
Reviewed by:
Date:
Audit Plan
Client Name:
Accounting Period Ended:
PRELIMINARY PLANNING PROCEDURES UNDERTAKEN
The plan was prepared after completion of the following planning procedures:
1. Review of prior year audit file and client correspondence file.
2. Attendance by engagement partner and audit manager at planning meeting with the Directors of
the client company.
3. Updating of the “UNDERSTANDING THE COMPANY AND ITS ENVIRONMENT, INCLUDING ITS
INTERNAL CONTROL” memorandum and a meeting of entire engagement team for assignment
briefing and discussion in relation to the assignment.
4. Completion of risk assessment procedures documented as part of the B section of the audit
programme.
ENGAGEMENT REQUIREMENTS
In accordance with the requirements of company law we are to undertake a statutory audit of the
financial statements of the company. The audit will be conducted in accordance with International
Standards on Auditing (UK and Ireland).
KEY CONTACTS IN COMPANY
NAME
RESPONSIBILITY
AUDIT RISK ASSESSMENT PROCEDURES UNDERTAKEN
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Analytical Review.
Discussion and enquiries with the directors.
Considering the risk factors set out in Section B 4 of the audit programme.
RESULTS OF AUDIT RISK ASSESSMENT
Significant Audit Risk Identified
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Planned audit response
Audit Plan
Client Name:
Accounting Period Ended:
SUMMARY OF AUDIT APPROACH TO MAJOR BALANCE SHEET AREAS
BALANCE SHEET CATEGORY
PLANNED AUDIT APPROACH
Fixed assets
Fixed asset additions to be vouched to invoice
and fixed assets inspection to be carried out.
The need for an impairment review will be
considered.
In respect of depreciation, the audit approach
will be to carry out analytical review on the
depreciation charge and do substantive testing
(amount based on results of analytical review)
on depreciation calculations.
Debtors
Debtors at year-end are likely to be confined to
funding agency funding unpaid. Verification of
amounts due will be by vouching to funding
agency confirmation and subsequent receipts.
Bank
In response to assessed risk of misstatement,
vouch bank reconciliation and obtain bank
confirmations.
Carry out cut off work.
Significant substantive work can be undertaken
in this area with minimum input of audit team
time. This work will result in a very low level of
detection risk being achieved quickly and
economically.
Creditors
Amounts due to trade creditors are likely to be
small. Carry out analytical review procedures
and based on results determine level of
substantive testing needed on trade creditors.
Select all major suppliers, unusual balances,
significant balances and debit balances for
verification.
Accruals will be largely audited using analytical
review procedures, client enquiry and targeted
substantive testing arising from the results of
analytical review. Undertake significant work in
the search for unrecorded liabilities. PAYE to be
vouched and calculations during the year
reviewed. Risk of grants received (funding)
becoming repayable requires special attention.
Member guarantee and reserves
Assessed risk is low as audit team has a
detailed knowledge of the company’s capital
structure. This knowledge does not indicate any
changes in the structure during the accounting
period. The response to the low assessed risk
will be:
1. Review company register and agree
details to accounts. In particular
ensure that the guarantee of the
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Audit Plan
Client Name:
Accounting Period Ended:
members is disclosed.
2. Enquire from client if any changes in
share structure during year. Review
all minutes of directors meeting and
shareholder meetings.
3. Obtain search of company’s file in
the companies’ office and agree
details to financial statements.
4. Ensure the company has a
minimum of seven members at all
times.
Stocks
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We do not expect the company to have any stock
at year-end.
Audit Plan
Client Name:
Accounting Period Ended:
SUMMARY OF AUDIT APPROACH TO INCOME AND EXPENDITURE ACCOUNT
INCOME & EXPENDITURE LINE ITEM
Income
AUDIT APPROACH
The planned response to the assessed risk is:
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EXPENSES
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Third party confirmation from funding
agency of income.
Carry out analytical review procedures
to highlight unusual trends etc.
Undertake additional audit verification
as warranted having reviewed the
results of the above work.
Check cut off to ensure income is
accounted for in correct year.
Undertake programme of work on public
funding as set out in the audit
programme income section.
Prepare detailed analytical review. Use the
following as basis for comparison:
 Prior year figures.
 Non-accounting data where possible.
Prepare reconciliation of wages to P35.
Where trends / fluctuation cannot be explained
consider preparing analysis of the expense
account to determine reason for the unexpected
fluctuation.
Perform detailed checks of wage calculations.
Undertake programme of work as outlined in the
audit programme expenditure section.
Audit Plan
Client Name:
Accounting Period Ended:
LAW AND REGULATION
Law or Regulation identified
Company law
Revenue law
Funding agency regulations.
Related Audit Risk
Non compliance with company
law that could result in a
material misstatement in the
financial statements.
Exposure to additional tax,
interest and penalties that are
not accrued for in the financial
statements.
Exposure to possible repayment
of funding received from the
funding agency, where such
refunds are not accrued for in
the financial statements.
Planned Audit Approach
Review of the company’s
compliance with company law.
Consideration of the company
exposure to VAT, PAYE/ PRSI
and Corporation tax and obtain
adequate evidence that there
is no exposure to these taxes
or where there is an exposure
that the financial statements
contain adequate provision for
the tax.
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We will review
correspondence with
the funding agency to
identify any possible
issues that could give
rise to possible refunds.
Obtaining written
representations on
possible noncompliance from the
Board.
Request access to any
inspection / audit
reports prepared by the
funding.
Audit Plan
Client Name:
Accounting Period Ended:
FRAUD
Type of Fraud
Fraudulent financial reporting
Misappropriation of assets
Susceptibility of the financial
statements to material
misstatements due to fraud
Risk assessment points to the
risk of a material misstatement
in the financial statements
from
fraudulent
financial
reporting as low.
This is
based on:
 The knowledge the
firm has of the client.
 Controls operated by
directors.
 The
expected
financial outcome for
the
period
is
predictable.
Risk assessment points to the
risk of a material misstatement
in the financial statements
from
misappropriation
of
assets as low. Due to the
predictable nature of the
income
streams
and
expenditure it would be
difficult
to
conceal
misappropriation of assets.
Planned Audit Approach to
address risk
1. The planned substantive
based audit work will
reduce
the
risk
of
fraudulent
financial
reporting
going
undetected.
2. Analytical review.
3. Application
of
the
knowledge of the entity in
making an assessment of
the credibility of the final
financial statements
1. The planned substantive
based audit work will
reduce
the
risk
of
misstatement
in
the
financial statements from
misappropriation
of
assets.
2. Plan to request a copy of a
sample of returned paid
cheques to confirm validity
of the payments.
3. Plan to confirm existence
of scheme participants.
4. Analytical procedures.
Management override
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While this is possible, the
planned audit response is
adequate.
1. Overall planned audit work.
2. Risk will be considered
throughout the audit
process.
3.
Audit Plan
Client Name:
Accounting Period Ended:
AUDIT STAFF
Partner
Manager
Staff member (s)
MATERIALITY (AS CALCULATED AT SCHEDULE B2)
Overall performance materiality.
Specific performance materiality for separate
classes of transactions (where applicable).
Specific performance materiality for separate
classes of balances (where applicable).
Specific performance materiality for separate
classes of disclosures (where applicable).
Matters regarded as trivial
€
€
for transactions between company and
directors.
€
for balances due by directors.
€
for all disclosures.
€
APPROACH TO PLACING RELIANCE ON INTERNAL CONTROLS
Due to small number of people involved in management of the entity, segregation of duties is
limited and therefore completion of the audit using a predominantly substantive approach is the
audit approach planned.
APPROACH TO COMPLIANCE WITH ETHICAL STANDARD FOR AUDITORS
We will complete Section B1 of the audit programme to identify any potential issues arising for the
firm in complying with the ethical standards. The overall approach of the firm to complying with the
requirements of the ethical standards will be documented in section B 1 of the audit file.
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Audit Plan
Client Name:
Accounting Period Ended:
THIRD PARTY REPORTING REQUIREMENTS
During the course of the audit assignment, the audit team will consider the third party reporting
obligations set out below and where a reporting obligation is identified, the matter will be immediately
brought to the attention of the partner in charge.
Indictable offences
Where during the course of the audit we
become aware that a director, secretary, agent
of the company or the company may have
committed an indictable offence under the
Companies Act 1963 to 2013 this should be
reported to the Director of Corporate Law
Enforcement.
Proper books of account
If the auditor forms the opinion that proper
books of account are not kept, then we are
required to notify both the company and not later
than 7 days after notifying the company notify
the Register of Companies of the situation. If
auditor is of the opinion that the directors have
taken steps to remedy the situation, then the
Register need not be informed under section
194 of 1990 Act. Staff are aware that failure to
maintain proper books of account is potentially
an indictable offence and will be required to be
reported to the Director of Corporate Law
Enforcement.
Criminal Justice (Money Laundering and
Terrorist Financing) Acts 2010 and 2013.
As our firm is a designated body under antimoney laundering legislation we are required to
report our suspicions where we believe that an
offence under this legislation has been
committed.
Criminal Justice (Theft and Fraud) Act 2001
We are required to report our suspicions to the
Garda where we believe that an offence under
the above act was committed.
Taxes Consolidation Act 1997
As auditor / tax advisor to the company we are
required to take the actions specified in the tax
acts where we become aware that a material
relevant revenue offence under the Act has
been committed.(see section 1079 of Tax Act)
ASSIGNMENT TIMETABLE
Task
Commence assignment.
Issue standard audit request letters:
 Bank letter,
 Audit planning letter,
 Solicitor request letter.
Responsible individual review.
Issue financial statements for approval by
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Audit Plan
Client Name:
Accounting Period Ended:
directors.
Sign audit report.
AUDIT PLAN REVIEWED AND APPROVED BY:
SIGNATURE
MANAGER
PARTNER
Prepared by:
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Reviewed by:
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DATE
Audit Plan
Client Name:
Accounting Period Ended:
AUDIT PLAN REVISIONS
Revisions to audit plan.
Partner
Manager
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Date
Date