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SAS
No. 47 Planning an Audit of Financial Statements |
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 Status |
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Issued by
Auditing Standards Committee in Taiwan on 1 October, 2009 |
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Summary |
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This Statement deals
with the auditor’s responsibility to plan an audit of financial
statements so that the audit will be performed in an effective
manner. |
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Planning an audit
involves establishing the overall audit strategy for the engagement
and developing an audit plan. |
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An overall audit
strategy sets the scope, timing and direction of the audit, and
guides the development of the audit plan. |
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An audit plan includes a
description of the nature, timing and extent of planned risk
assessment procedures; the nature, timing and extent of planned
further audit procedures at the assertion level; and other planned
audit procedures that are required to be carried out so that the
engagement complies with Statements of Auditing Standards. |
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Planning is a continual
and iterative process that often begins shortly after the completion
of the previous audit and continues until the completion of the
current audit engagement. |
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The nature and extent of
planning activities will vary according to the size and complexity
of the entity, the key engagement team members’ previous experience
with the entity, and changes in circumstances that occur during the
audit engagement. |
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The engagement
partner and other key members of the engagement team shall be
involved in planning the audit, including planning and participating
in the discussion among engagement team members. |
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The auditor shall undertake the
following activities at the beginning of the current audit
engagement:
(a) Performing
procedures required by SAS No. 44 Quality Control for Audit of
Historical Financial Information regarding the continuance of the
client relationship and the specific audit engagement;
(b) Evaluating
compliance with relevant ethical requirements, including
independence, in accordance with SAS No. 44 Quality Control for
Audit of Historical Financial Information; and
(c) Establishing
an understanding of the terms of the engagement. |
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The audit documentation shall include the overall audit strategy,
the audit plan, and 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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For initial audit
engagements, the auditor shall undertake the following activities
prior to starting an audit:
(a) Performing
procedures required by SAS No. 44 Quality Control for Audit of
Historical Financial Information regarding the acceptance of the
client relationship and the specific audit engagement; and
(b) Communicating
with the predecessor auditor, where there has been a change of
auditors, in compliance with SAS No. 17 Communication between
Successor and Predecessor Auditors. |
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 Effective
date
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This Statement is
effective from 1 January, 2010. |
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