Audit Planning Memorandum

Planning Memorandum

1.0 PLANNING MEMORANDUM Entity

File ref.

Audit assignment

Accounting period

Audit objective(s)

Audit directorate/section

Responsible auditor/Team leader

Prepared by/ sign/date

Reviewed by Sign/date

Approved by Sign/date

(Team leader)

(Deputy director)

(Director)

Comments

Comments

Proposed key audit areas and reasons for selection Follow up of unresolved previous issues (Ref 1.12)

Ref.doc

New issues

Ref.doc

Audit approach or strategy and Scope Proposal for IT Audit section to be involved?

Yes/No For proposed materiality levels see the Materiality Assessment form.

Version 17.10.05

1

Planning Memorandum KNOWLEDGE OF THE BUSINESS/ENTITY 1.1 General Background Name of the auditee Head: Postal address of auditee: Physical address of auditee General telephone no.: General fax number Pension Contributions no.: VAT no: PAYE no: Banking Details: Bank name

Type of Account

Bank Account No

Other relevant information (if applicable)

1.2 Relevant Contact Persons Name

Rank and Dept

Office location

Contact number

1.3 Enabling Acts Establishing the Entity

1.4 Other Regulatory Framework Rules and Regulations: Accounting Policies and procedures: Accounting Framework:

1.5 Business Operations of the Entity Version 17.10.05

2

Planning Memorandum Nature of the entity’s business activities:

1.6 (a) Size of Entity Total Staff Composition: Establishment: Actual: Variance: Establishment No. of Departments: No. of Provincial Offices: No. of District Offices: 1.6 (b) Size of Entity (Financial) Expenditure budget Original budget Provision: Supplementary Provision: Total Authorised Provision Actual Expenditure: Variance: Funds Actual Funds Released: Actual Expenditure: Variance: Income Total Income Budget: Actual Collections: Variance: Reasons for variances:

1.7

Organisational Structure (Obtain From the Client. This will direct the choice of audit areas) The structure will include: Ref.doc -

Lines of authority and responsibilities Income and expenditure functions Departments Account Areas (budget as in Estimates of Revenue/Expenditure Ministers’ briefs

Version 17.10.05

3

Planning Memorandum -

1.8

Budget Speech

Operating Management Ref.doc

Has the entity issued a strategic plan/business plan? (indicating for instance goals, mission, vision and performance indicators) Experience and reputation of staff: Turnover of key staff and staff in general:

1.9 Financial Performance Financial management and budgetary control:

Ref.doc

Unconstitutional and Unauthorised expenditure: (Examine and analyse financial statements, board minutes and management reports)

1.10 Reporting Requirements Appropriation/Financial Statements by the auditee to be Ref.doc included in the annual reports to be presented to Parliament Other reports as required by Act (if applicable)

1.11

Changes With Client Since Last Audit (e.g structure, accounting policies, enabling, Acts, management etc) Ref.doc

1.12

Follow-Up of Prior Year Reports

Version 17.10.05

4

Planning Memorandum Unanswered in Management Letters/ Inspection Reports/ Audit Ref.doc Reference Sheets Unresolved issues in Annual and other Audit Reports Unresolved issues in Public Accounts Committee Reports Unresolved issues in Treasury Minutes/ Action Taken Reports

1.13 Systems Documentation Conclusion (See1.3 Systems documentation form)

Ref.doc

1.14(a) Are there any computerised systems that produce data that affects the accounts related to the audit assignment? List relevant systems and describe its main functions Ref.doc

1.14(b) Has the relevant systems been subject to IT audit before? List the main conclusions Ref.doc

1.15 Control Environment Conclusion (See 1.4 Control environment questionnaire)

Ref.doc

1.16(a) Is an internal audit function established? Ref.doc

Version 17.10.05

5

Planning Memorandum 1.16(b) has the internal audit produced any audit reports relevant to this assignment? List the reports Ref.doc

1.16 (c) evaluation of internal audit functions (See 1.5 Evaluation of Internal Audit questionnaire) to be filled in if audit work will be based on internal audit work

Ref.doc

1.17(a) Is there an audit committee? Ref.doc

1.17(b) Are there established procedures to guide its operations and have they been followed? Ref.doc

1.18

Going Concern Conclusion Ref.doc

(See 1.6 Going Concern Questionnaire)

1.19 Conclusion on Risk Assessment Ref.doc (See 1.1 Risk Assessment Questionnaire)

Version 17.10.05

6

Planning Memorandum

2.

AUDIT ASSIGNMENT MANAGEMENT PLAN

2.1 Personnel Audit team

Name

Working days planned Planning

Exec.

Report

Director Team Leader Rest of Team

TOTAL MANDAYS 2.2

OAG budget implications

Budget item

Account

2.3 Time schedule/milestones for the assignment Milestone Submission of planning memorandum Audit programmes finalised Submission of file to director for review Draft report Updated risk assessment form Audit assignment management report

Version 17.10.05

Amounts planned

Date planned

7