ABSTRACT
Planning is one of the most important activities in internal auditing. Unfortunately, too many internal auditors rush through the planning phase so they can get the testing started, not realizing that poor planning results in poor execution. The planning phase often begins with the notification to the client that the audit is imminent. This notification is sometimes made after the annual plan is formalized. Another important document produced during the planning phase is the planning memo. Preliminary meetings provide a great mechanism to collect critical information as the internal auditors prepare for the audit. Internal auditors should approach these meetings with the goal of collecting key information, become more informed about the program or processes' activities, key systems, documents and data in use, nuances about the area in scope and seek client input. Failing to plan is planning to fail. Approximately a third of the engagement's budget should be allocated and spent in planning activities.
