Good planning can really help to focus the audit and make it more efficient and effective.
The objective of the auditor is to plan the audit so that it will be performed in an effective manner.
Engagement partner and key members of the engagement shall plan and discuss the planning with the team.
The auditor needs to perform procedures on client relationship and engagement, evaluate compliance with ethical requirements and understand the terms of the engagement.
The audit plan shall include the nature, extent, timing of planned audit procedures and also the resources required to complete the audit. The audit strategy can be modified as the audit progresses. The extent of supervision also needs to be planned.
The audit plan and strategy must be part of audit documentation (can be memorandum form, checklists etc). Significant changes to the audit plan needs to be explained. Planning needs to consider things like analytical procedures, understanding of legal framework, materiality, involvement of experts etc.