1. Audit Planning & Audit Evidence

2. SLAuS 7 – Audit Planning
The auditor should plan the audit work so that the audit will be performed in an effective manner.
"Planning" means developing a general strategy and a detailed approach for the expected nature, timing and extent of the audit. The auditor plans to perform the audit in an efficient and timely manner.

3. SLAuS 7 – Audit Planning Importance
Appropriate attention is devoted to important areas of the audit,
Potential problems are identified
Work is completed expeditiously.
Proper assignment of work to assistants and in coordination of work done by other auditors and experts

4. SLAuS 7 – Audit Planning Extent of Planning The size of the entity,
The complexity of the audit
The auditor's experience with the entity and knowledge of the business.

5. SLAuS 7 – Audit Planning The Overall Audit Plan
The auditor should develop and document an overall audit plan describing the expected scope and conduct of the audit

6. SLAuS 7 – Audit Planning The Overall Audit Plan
Matters to be considered by the auditor
Knowledge of the Business (economy, entity and management)
Understanding the Accounting and Internal Control Systems (accounting + ICs)
Risk and Materiality
Nature, Timing and Extent of Procedures
Coordination, Direction, Supervision and Review
Other Matters (Going concern, Related parties)

7. SLAuS 7 – Audit Planning The Audit Program
The auditor should develop and document an audit program setting out the nature, timing and extent of planned audit procedures required to implement the overall audit plan.

8. Changes to the Overall Audit Plan and Audit Program
SLAuS 7 – Audit Planning
Changes to the Overall Audit Plan and Audit Program
The overall audit plan and the audit program should be revised as necessary during the course of the audit.
Planning is continuous throughout the engagement because of changes in conditions or unexpected results of audit procedures. The reasons for significant changes would be recorded.

9. SLAuS 4 – DOCUMENTATION
The auditor should document matters which are important in providing evidence to support the audit opinion and evidence that the audit was carried out in accordance with Sri Lanka Auditing Standards.
"Documentation" means the material (working papers) prepared by and for, or obtained and retained by the auditor in connection with the performance of the audit. Working papers may be in the form of data stored on paper, film, electronic media or other media.

10. SLAuS 4 – DOCUMENTATION Working papers:
(a) assist in the planning and performance of the audit;
(b) assist in the supervision and review of the audit work; and
(c) record the audit evidence resulting from the audit work performed to support the auditor's opinion

11. Form and Content of Working Papers
SLAuS 4 – DOCUMENTATION
Form and Content of Working Papers
The auditor should prepare working papers which are sufficiently complete and detailed to provide an overall understanding of the audit.
The auditor should record in working papers information on planning the audit work, the nature, timing and extent of the audit procedures performed, the results thereof, and the conclusions drawn from the audit evidence obtained.

12. Permanent Vs Current Audit Files
SLAuS 4 – DOCUMENTATION
Permanent Vs Current Audit Files
In the case of recurring audits, some working paper files may be classified as "permanent" audit files which are updated with new information of continuing importance as distinct from current audit files which contain information relating primarily to the audit of a single period.

13. SLAuS 4 – DOCUMENTATION
Confidentiality, Safe Custody, Retention and Ownership of Working Papers
The auditor should adopt appropriate procedures for maintaining the confidentiality and safe custody of the working papers and for retaining them for a period sufficient to meet the needs of the practice and in accordance with legal and professional requirements of record retention.
Working papers are the property of the auditor. Although portions of or extracts from the working papers may be made available to the entity at the discretion of the auditor, they are not a substitute for the entity's accounting records.