Laura Deswita Fonna

1201103040014
Audit Management

Planning Criteria
Every entity has varied planning activities based on the size and complexity of the
entity. Planning is not a discrete phase of an audit but rather a continual and iterative process
that often begins shortly after (or in connection with) the completion of the previous audit
and continues until the completion of the current audit engagement.
Adequate planning helps to ensure that appropriate attention is devoted to important
areas of the audit, that potential problems are identified and resolved on a timely basis and
that the audit engagement is properly organized and managed in order to be performed in an
effective and efficient manner. Adequate planning also assists in the proper assignment of
work to engagement team members, facilitates the direction and supervision of engagement
team members and the review of their work, and assists, where applicable, in coordination of
work done by auditors of components and experts. Planning includes the need to consider,
prior to the auditor's identification and assessment of the risks of material misstatement, such
matters as the following:
a) The analytical procedures to be applied as risk assessment procedures.
b) A general understanding of the legal and regulatory framework applicable to
the entity and how the entity is complying with that framework.
c) The determination of materiality.
d) The involvement of specialists.
e) The performance of other risk assessment procedures.
Marketing Criteria:
The marketing process helps the company analyze and evaluate the marketing
strategies, activities, goals and results. While the process takes time, the results can be
enlightening and might:
Focus the communication of a consistent message to the right customers.
Reveal new, unknown or neglected markets.
Help fine-tune current strategies and plans to help increase market share.
Production Criteria:
Manufacturing Process Audit systematically examines the acts and decisions by
people with respect to quality in order to independently evaluate and report the degree of
compliance to operational requirements of the quality program. Criteria:
a) Assists companies and businesses in monitoring corrective action results and
performing follow up monitoring to determine if the corrective actions have
actually eliminated the problem or if further action is required.
b) Documents any problems discovered and informs all those affected.
c) Helps organizations and businesses not to assign blame in as far as problems
are concerned but to find a solution for the same.

d)
e)
f)
g)

Improve businesses thus achieving success.

Improve on the quality management audit.
Improve on manufacturing strategy.
Helps companies and businesses especially those in the manufacturing sector
to determine flexibility requirements in their manufacturing facilities.
h) Acts as a powerful tool for continued improvement.
Finance Criteria:
Financing are usually assessed according to the following 6 criteria:
1. Calibre of the business principals as the primary source of fuel for business

projects.
2. Business environment risks will up come so the company should also be

adequately covered by insurance that is tailored to the nature of its activities.

3. Project credibility based on verifiable facts and are realistic.
4. Company's ability to pay and financial structure because it will show a healthy

balance between loans and assets.

5. Principals' financial history.
6. Debt financing is usually secured against company assets, which should be

sufficient to allow lenders to cover their risk.

Personnel criteria:
Personnel Management encompasses hiring, assigning personnel to engagements,
professional development, and advancement activities. Personnel Management criteria are:

Give the appropriate characteristics to perform tasks competently like meeting

minimum academic requirements or leadership capabilities.

Have the degree of technical training and proficiency required in the

circumstances.
Participate in general and industry-specific continuing professional education

and other professional development activities that enable them to fulfill

responsibilities assigned.
Have the qualifications necessary for fulfillment of the responsibilities.