ISA 300 — Planning an Audit of Financial Statements

ISA 300 DEALS with the auditor’s responsibility to PLAN an ‘Audit‘ of Financial Statements.

ISA 300 – Introduction

1. Scope of this ISA

It is written in the context of ‘Recurring Audits’. Additional considerations in an initial audit engagement are SEPARATELY identified.

2. Effective Date

This ISA is EFFECTIVE for audits of financial statements for periods beginning on or after December 15, 2009.

ISA 300

ISA 300 – Objective

The Objective of the ‘Auditor’ is to PLAN the audit so that it will be performed in an effective Manner.

ISA 300 – Requirements

1. Involvement of Key Engagement Team Members

The Engagement Partner and other Key Members shall be INVOLVED in planning the audit.

2. Preliminary Engagement Activities

The ‘Auditor’ shall UNDERTAKE the following activities at the beginning of the current audit engagement:

  • Performing procedures required by ISA 220;
  • Evaluating compliance with relevant ethical requirements, including independence in accordance with ISA 220; AND
  • Establishing an understanding of the terms of the engagement as required by ISA 210.

3. Planning Activities

The ‘Auditor’ shall ESTABLISH an overall AUDIT STRATEGY that sets the scope, timing and direction of the audit and that guides the development of the AUDIT PLAN.

In Establishing the ‘OVERALL AUDIT STRATEGY’, the auditor shall:

(a) IDENTIFY the Characteristics of the engagement that define its scope;
(b) ASCERTAIN the Reporting Objective(s) of the engagement;
(c) CONSIDER the Factors that are Significant in directing the engagement team’s efforts;
(d) CONSIDER the results of Preliminary Engagement Activities and knowledge gained on other engagements; AND
(e) ASCERTAIN the Nature, Timing and Extent of resources necessary to perform the engagement.

The auditor shall DEVELOP an ‘AUDIT PLAN’ that shall Include a description of:

(a) The nature, timing and extent of planned risk assessment procedures, as determined under ISA 315.
(b) The nature, timing and extent of planned further audit procedures at the assertion level, as determined under ISA 330.
(c) Other planned audit procedures so that the engagement complies with ISAs.

The ‘Auditor’ shall UPDATE and CHANGE the overall Audit Strategy and the Audit Plan during the course of the audit.

The ‘Auditor’ shall PLAN the nature, timing and extent of direction and supervision of engagement team Members and review of their work.

4. Documentation

The ‘Auditor’ shall INCLUDE in the audit documentation:

  • The overall audit strategy;
  • The audit plan; AND
  • Any significant changes Made during the audit engagement and the reasons for such changes.

5. Additional Considerations in Initial Audit Engagements

The ‘Auditor’ shall UNDERTAKE the following activities prior to starting an initial audit:

(a) Performing procedures required by ISA 220; AND
(b) Communicating with the predecessor auditor, where there has been a change of auditors in compliance with relevant ethical requirements.


ISA 300Planning an Audit of Financial Statements‘ DEALS with the auditor’s responsibility to plan an ‘Audit‘ of Financial Statements.

[300-499] Risk Assessment and Response to Assessed Risk

ISA 315

ISA 320

ISA 330

ISA 402

ISA 450

Leave a Comment