Audit Planning
Audit planning is the initial stage of the audit process. It helps to establish the overall audit strategy and the technique to complete the audit. Audit planning makes the audit process more structured and objective oriented.
CISA aspirants should have an understanding of the following important terms before reading about the different aspects of audit planning:
- Audit universe: An inventory of all the functions/processes/units in the organization.
- Qualitative risk assessment: In a qualitative risk assessment, risk is assessed using qualitative parameters such as high, medium, and low.
- Quantitative risk assessment: In a quantitative risk assessment, risk is assessed using numerical parameters and is quantified; for example, for a 50% chance of failure, the amount at risk is $1,000.
- Risk factors: These are factors that have an impact on risk. The presence of such factors increases the risk, whereas their absence decreases the risk.
- Organization...
