Audit Planning
CISA aspirants should understand the following important terms before reading about the different aspects of audit planning:
- Audit universe: An inventory of all the functions/processes/units under 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 1000 $.
- Risk factors: Factors that have an impact on risk. The presence of such factors increases the risk, whereas their absence decreases the risk.
All the preceding elements are important prerequisites for the design of a structured audit plan. Next, you will explore the benefits of a structured and well-designed audit plan.
Benefits of Audit Planning
Audit planning is the initial stage of the audit...
