Outline the nature of audit planning and describe its principal Essay

Outline the nature of audit planning and describe its corpus objectives, identifying issues that you consider to be relevant to the planning of the audit of FXT - Essay ExamplePlanning in auditing the books of FXT planetary Limited entrust ensure that the auditing process produces the maximal out of the minimum. The various aspects of auditing the books of FXT International Limited include vouching, verification and valuation (Kumar and Sharma, 2005, p. 59).It is Abacus plan to conduct an effective audit through an efficient approach that will last the shortest possible time. The basis of the auditing plan is FXT International Limiteds line of business. FXT International Limited offers structured financial products as well as financial derivatives to institutional investors. Therefore, the basis of the auditing plan is the understanding of the financial and derivatives market. Abacus will perform tests of control and procedures to come up with reasonable conclusions that will ass ist in the formation of an opinion on the clients financial statements (Kumar and Sharma, 2005, p. 72). The plan will be based on FXT International Limiteds report system policies and procedures that direct its internal control processes. Concisely, some of the factors that Abacus will consider when planning the audit include4. Knowledge of FXT International Limited business aside from the reporting requirements of financial services institutions. It is the most important factors that Abacus will consider when planning an audit.It is the most important factor because it will enable Abacus to identify the events, minutes and practices that may affect financial information. Auditors will derive such knowledge from areas such asThe article of association will give auditors ideas about FXT International Limiteds size and nature. Additionally, auditors from Abacus will acquaint themselves with the management of FXT International Limiteds business (Kumar and Sharma, 2005, p. 80).Account ing standards requires that listed companies publish audited books of account. The rationale is