Engagement Planning: Establishing Objectives and Scope, 2nd Edition

Engagement Planning: Establishing Objectives and Scope, 2nd Edition

This Practice Guide explains how internal auditors should plan audit engagements to ensure they are aligned with organizational objectives and focused on the most relevant risks.

Effective engagement planning typically involves:

• Defining the engagement objectives and determining whether it is an assurance or advisory engagement
• Understanding the activity under review and assessing related risks
• Establishing the engagement scope, including activities, processes, time periods, and timelines
• Identifying the resources needed to achieve the objectives
• Developing and documenting a work program
• Communicating objectives, scope, and timing with management and, when appropriate, the board
• Addressing any scope limitations or resource constraints

The guide emphasizes that engagement planning should be based on a clear understanding of the organization's strategy, objectives, and the expectations of stakeholders. The nature of the engagement, whether assurance or advisory, also influences planning requirements, objectives, and scope.