AAAudit Planning

Hi,
I agree with you that it is very hard to understand what Kaplan is trying to explain on this chapter.
In my opinion.AUDIT PLANNING is the operational details of the AUDIT STRATEGY.
In the audit strategy there are 3 main items:
Scope : Knowledge of the business
Timing : When to report and what kind of report, When to visit the client
Directions : Preliminary assess the materiality - identification of high risk area - identification of the components and account balances
In Planning:
Based on the Knowledge of the Business above plus Analytical Review you assess the risk and materiality.
From here then we need to find out what procedures/strategy to decide. Whether it is all substantive test, or interim and/or final audit, analytical review or tests of details.
How many people do we need in the team,
Who should be the team member
how much work should be done
when the work should be done
What kind of audit evidence do we need ???
That is my conclusion of it.
What do you think? They say 2 brains are better than 1. :D
Ratna1238

Can someone explain what is materiality misstatement?

ISA 320:

Misstatements, including omissions, are considered to be material if they, individually or in the aggregate, could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

Material misstatement is any omission will affect the economic decision of users taken on the basis the finanacial statement.