What is the first step in the audit planning process?

The first step in the audit planning process is to consider the objectives of the activity being reviewed. This foundational step is crucial as it sets the direction for the entire audit. Understanding the objectives allows auditors to align their focus with the goals and expectations of the organization, ensuring that the audit is relevant and valuable. By identifying what the organization aims to achieve, auditors can tailor their approach, determine the scope, and prioritize areas of risk or concern that require attention.

Focusing on the objectives helps in understanding the key processes, controls, and potential areas for improvement, which in turn informs the subsequent steps in the audit process. It establishes a framework for developing the audit plan, including assessing risks and determining how to allocate resources effectively.

In contrast, identifying resources, determining timelines, and gathering data from previous audits, while important in the overall audit planning process, follow the establishment of clear objectives. These activities depend on knowing what the audit is intended to achieve, highlighting why considerations of objectives are paramount in kick-starting the audit planning process.