PSA 300 (Rev.) - PSA 300(Revised Auditing Standards and...

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PSA 300 (Revised) Auditing Standards and Practices Council PHILIPPINE STANDARD ON AUDITING 300 (REVISED) PLANNING AN AUDIT OF FINANCIAL STATEMENTS
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PSA 300 (Revised) PHILIPPINE STANDARD ON AUDITING 300 (REVISED) PLANNING AN AUDIT OF FINANCIAL STATEMENTS (Effective for audits of financial statements for periods beginning on or after December 15, 2004) CONTENTS Paragraphs Introduction ………………………………………………………….. 1-5 Preliminary Engagement Activities …………………………………. 6-7 Planning Activities …………………………………………………... 8-27 The Overall Audit Strategy ………………………………………. 8-12 The Audit Plan …………………………………………………… 13-15 Changes to Planning Decisions During the Course of the Audit ………………………………………………………. 16-17 Direction, Supervision and Review …………………………… .... 18-21 Documentation …………………………………………………… 22-26 Communications With Those Charged With Governance and Management …………………………………………………. 27 Additional Considerations in Initial Audit Engagements ……………. 28-29 Effective Date ………………………………………………………... 30 Acknowledgment …………………………………………………….. 31-32 Appendix: Examples of Matters the Auditor May Consider in Establishing the Overall Audit Strategy Philippine Standard on Auditing (PSA) 300, “Planning an Audit of Financial Statements,” should be read in the context of the “Preface to the Philippine Standards on Quality Control, Auditing, Review, Other Assurance and Related Services,” which sets out the application and authority of PSAs.
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PSA 300 (Revised) PLANNING AN AUDIT OF FINANCIAL STATEMENTS Introduction 1. 2. 3. 4. The purpose of this Philippine Standard on Auditing (PSA) is to establish standards and provide guidance on the considerations and activities applicable to planning an audit of financial statements. This PSA is framed in the context of recurring audits. In addition, matters the auditor considers in initial audit engagements are included in paragraphs 28 and 29. The auditor should plan the audit so that the engagement will be performed in an effective manner. Planning an audit involves establishing the overall audit strategy for the engagement and developing an audit plan, in order to reduce audit risk to an acceptably low level. Planning involves the engagement partner and other key members of the engagement team to benefit from their experience and insight and to enhance the effectiveness and efficiency of the planning process. Adequate planning helps to ensure that appropriate attention is devoted to important areas of the audit, that potential problems are identified and resolved on a timely basis and that the audit engagement is properly organized and managed in order to be performed in an effective and efficient manner. Adequate planning
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