According to IIA guidance, which of the following best describes the purpose of a planning memorandum for an audit engagement?

Question

Options

• AIt documents the audit steps and procedures to be performed.
• BIt documents preliminary information useful to the audit team.
• CIt documents events that could hinder the achievement of process objectives.
• DIt documents existing measures that manage risks in the area under review.

• A
  2% (1)
• B
  90% (38)
• C
  5% (2)
• D
  2% (1)

Explanation

The purpose of a planning memorandum for an audit engagement, according to IIA guidance, is to document preliminary information that will be useful to the audit team. This includes background information on the area being audited, key risks identified, the scope of the audit, and any initial observations that might impact the audit's focus. The planning memorandum serves as a foundational document that guides the audit team's efforts and ensures that everyone involved in the engagement has a clear understanding of the audit's objectives and context.

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