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State about the Audit plan contents
1. Report requirements and terms of reference.
2. A review of business and financial position, reviewing why changes had occurred in current year.
3. Calculations for levels of materiality.
4. Risk areas highlighted including assessment of internal controls.
5. detailing overall audit approach (substantive or compliance) including deadlines andtiming.
6. A budget for time estimated for each staff member.
7.Staffing levels and request for any specialists i.e. computer based control assurance staff.
8. Reviewed and approved by manager.
9. Distribute audit plan to all staff on the audit.
State about the Detection risk This is the risk that auditors 'substantive procedures don't detect a material misstatement in an account balance or class of transactions. It is
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