Auditing and Ethics · Audit Strategy, Audit Planning and Audit Programme

Planning Activities and Preliminary Engagement Work (SA 300) for CA Intermediate

Updated 4 October 2026 · Fact-checked

Audit planning under SA 300 means deciding how the audit will be done so it is effective and timely. It starts with preliminary engagement activities: ethics and independence checks, acceptance steps and agreeing terms. Then you understand the entity, involve key team members, direct the team and document the plan.

Understand Planning Activities and Preliminary Engagement Work

Planning is not a one-time step done before fieldwork. SA 300 treats it as a continual and iterative process. It begins soon after the previous audit ends, or when you accept the engagement, and runs until the audit is complete. You update the plan when circumstances change.

Why plan? Good planning helps you give appropriate attention to important areas, find and resolve problems on time, and organise and manage the engagement so it is performed in an effective and efficient manner. It also helps you select team members with the right capabilities and assign work properly. It makes direction, supervision and review easier. Where relevant, it helps coordinate work done by auditors of components and by experts.

Preliminary engagement activities come first. Under SA 300 you perform three things at the start of the current audit: perform the procedures required by SA 220 regarding continuance of the client relationship and the specific audit engagement; evaluate compliance with relevant ethical requirements, including independence; and establish an understanding of the terms of engagement, as SA 210 requires. These protect you before any real work begins.

Next come planning activities proper. You establish the overall audit strategy, which sets scope, timing and direction. You then develop an audit plan, which lists the nature, timing and extent of risk assessment procedures, further audit procedures and other procedures. To do this you must understand the entity and its environment. The engagement partner and other key team members should take part in planning, including the planning discussion among the team.

Communication with those charged with governance may take place at planning. You may discuss the general scope and timing and some planning matters, but you must not compromise audit effectiveness. Detailed procedures stay with you, because sharing them could make the audit too predictable. Discussion with management is also common, but the overall strategy and plan remain the auditor's responsibility.

Key rules to remember

Three preliminary engagement activities: Continuance procedures (SA 220) + Ethics and independence evaluation + Understanding of engagement terms (SA 210); Performed at the start of the current audit. Learn all three; exams ask you to list them.
Planning is continual: Planning = continual and iterative process, from the end of the previous audit until completion of the current audit; Never write that planning is a one-time stage.
Strategy versus plan: Overall audit strategy = scope, timing, direction. Audit plan = nature, timing and extent of specific procedures; The plan is more detailed than the strategy. Strategy comes first.
Benefits of planning: Attention to important areas, timely problem resolution, efficient management, right team selection, direction and review, coordination of others' work; Use as a checklist for any advantages question.
Communication with TCWG on planning: Discuss scope and timing. Do not compromise effectiveness. Do not hand over detailed procedures; The auditor keeps responsibility for strategy and plan.

How to solve Planning Activities and Preliminary Engagement Work questions

Most questions are theory or case-based: list benefits, state preliminary activities, or judge whether a planning step is correct. Use one structure.

1Identify what is asked: benefits, preliminary activities, understanding the entity, team involvement or communication with TCWG.
2Name the standard in your first line, mainly SA 300, with SA 220, SA 210 or SA 315 where relevant.
3State the rule in one sentence in plain words.
4List the points as short bullets, one idea each, using the checklists you have learned.
5In a case question, link each fact in the case to a point, such as a new client leading to continuance and ethics checks.
6Give a conclusion: what the auditor should do or whether the action was correct.
7Keep to the marks: about one point per mark for list questions.

Quickest way: Checklist method for MCQs and written answers

When to use it: Use when time is short, and for MCQs on SA 300 statements.

For MCQs, test words like 'only', 'always' and 'one-time'. Planning is continual, so these are usually wrong.
Eliminate options that make planning the sole responsibility of the junior staff. Partner and key members must be involved.
Eliminate options where the auditor shares detailed procedures with management or TCWG.
For written answers, open with the standard, write the three preliminary activities or the benefits as bullets, then add one line applying them to the facts.
Write the heading and the rule first so you earn step marks even if the application is imperfect.

Common mistakes in Planning Activities and Preliminary Engagement Work

Treating planning as a one-time stage before fieldwork.
Textbook flow shows planning as the first step in a sequence.
Fix: Write that planning is continual and iterative, and the plan is updated as needed.
Listing fewer than three preliminary engagement activities, often missing the ethics and independence evaluation.
Students remember acceptance and the engagement letter only.
Fix: Memorise: continuance, ethics and independence, terms of engagement.
Confusing the overall audit strategy with the audit plan.
Both sound like 'how we will audit'.
Fix: Strategy is the broad scope, timing and direction. The plan lists specific procedures in detail.
Saying the auditor must share the detailed audit plan with those charged with governance.
Students mix up communication duties with transparency.
Fix: Say the auditor may discuss scope and timing and planning matters, but should not compromise effectiveness or reveal detailed procedures.
Writing generic benefits with no link to the case facts.
Students recall a list but do not apply it.
Fix: Quote the case fact, then name the matching benefit.

Worked examples

Example 1

State the three activities an auditor performs at the beginning of the current audit engagement as preliminary engagement activities under SA 300.

Show the solution

Name the standard: SA 300 requires these activities at the start of the current audit.
First, perform the procedures required by SA 220 on continuance of the client relationship and the specific engagement.
Second, evaluate compliance with relevant ethical requirements, including independence.
Third, establish an understanding of the terms of engagement as required by SA 210.
Add the purpose: these confirm that you have no issue with integrity, ethics or capability before planning in detail.

Answer: The three activities are: continuance procedures under SA 220, evaluation of ethical compliance including independence, and an understanding of engagement terms under SA 210.

Example 2

A junior suggests that the audit plan be prepared only after fieldwork begins, with the partner joining at the end. Comment with reference to SA 300 and list the benefits of planning.

Show the solution

Point out the error: planning is continual and starts soon after the previous audit or on acceptance, not after fieldwork.
The engagement partner and other key team members should take part in planning, including the team discussion. Joining at the end is wrong.
Benefits: attention to important areas.
Benefits: timely identification and resolution of problems.
Benefits: organised, efficient management of the engagement.
Benefits: selection of team members with suitable capabilities, and proper assignment of work.
Benefits: easier direction, supervision and review, and coordination of work by component auditors and experts.

Answer: The suggestion is incorrect. Planning is continual and begins before fieldwork, and the partner and key team members must be involved from the start. Planning gives attention to important areas, resolves problems on time, helps manage the audit efficiently, supports team selection, and eases direction, supervision, review and coordination of others' work.

Exam tips

Learn the three preliminary activities as a fixed list. They are a common short question.
In 'comment' or case questions, check first whether the action breaks a rule: one-time planning, partner absent, or detailed plan shared.
For benefits, write four to six crisp bullets. Do not write long paragraphs.
For TCWG communication, mention scope and timing and the point on not compromising effectiveness.
Keep the strategy and plan distinction ready, since MCQs test it.

Practice questions from Audit Strategy, Audit Planning and Audit Programme

Planning Activities and Preliminary Engagement Work in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

ACCA Applied SkillsPreliminary Engagement Activities and Engagement Letters

Planning Activities and Preliminary Engagement Work: frequently asked questions

What are the advantages of audit planning?

Planning helps you focus on important areas, resolve problems on time and manage the audit efficiently. It helps you pick suitable team members and assign work. It also eases direction, supervision, review and coordination of others' work.

What are preliminary engagement activities in SA 300?

There are three: performing continuance procedures under SA 220, evaluating ethical compliance including independence, and establishing an understanding of the terms of engagement under SA 210. You do these at the start of the current audit.

Can the auditor discuss the audit plan with those charged with governance?

Yes, the auditor may discuss the general scope, timing and some planning matters. But this must not compromise audit effectiveness. Detailed procedures should not be shared, as that can make the audit predictable.

Is audit planning a one-time activity?

No. SA 300 describes it as a continual and iterative process. You update the strategy and plan as circumstances change during the audit.