Historical Background of Audit
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The first step in creating an audit is to establish the audit objectives and scope. This involves identifying the purpose of the audit, the specific areas to be examined, and the criteria against which the audit will be conducted. Clearly defining these parameters helps ensure that the audit process is focused and effective in addressing the intended issues. Additionally, it is important to gather relevant background information and assess risks associated with the areas being audited.
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An audit planning memorandum typically includes an overview of the audit objectives, the scope of the audit, and the key risks identified in the preliminary assessment. It outlines the planned audit approach, including the timing and resources required, as well as the roles and responsibilities of the audit team members. Additionally, it may contain relevant background information about the entity being audited and any specific areas of focus or concern. Overall, the memorandum serves as a roadmap for the audit process.
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