The audit process runs in five stages: acceptance and planning, risk assessment, interim audit, year-end fieldwork and completion, and reporting. Each stage maps to Standards on Auditing issued by ICAI: SA 300 for planning, SA 315 (Revised) for risk assessment, and SA 700, 705 and 706 for the report.
Facts checked: 9 October 2026. Confirm the current text of each standard on the ICAI website; some standards have revised versions in force.
The stages
| Stage | What happens | Standards |
|---|---|---|
| 1. Acceptance | Independence check, engagement letter | SA 210, SA 220 |
| 2. Planning and audit strategy | Scope, timing, team, materiality, overall audit plan | SA 300, SA 320 |
| 3. Risk assessment | Understand entity and controls, identify risks of material misstatement | SA 315 (Revised) |
| 4. Interim audit | Test controls and transactions before year end | SA 330 |
| 5. Final fieldwork | Balances, estimates, disclosures, subsequent events | SA 330, SA 500, SA 560 |
| 6. Completion and reporting | Written representations, review, opinion | SA 580, SA 700, SA 705, SA 706 |
Audit strategy versus audit plan
The audit strategy is the overall approach: scope, reporting objectives, timing and the main directions. The audit plan is the detail: the nature, timing and extent of procedures. SA 300 expects the strategy first and the plan to follow it, with both updated as work proceeds.
Interim audit
An interim audit is the work done during the year, often at the half-year or after the third quarter. It lets the team test controls, review early transactions and spread effort so year-end is not a rush. Findings feed back into the plan. Because interim work covers only part of the period, roll-forward procedures are needed to cover the remaining months.
Sample timeline for a March year-end
| When | Activity |
|---|---|
| April to May | Engagement letter, understanding the entity, strategy |
| October to December | Interim audit, controls testing |
| Early March | Planning update, count instructions |
| April to May | Stock count attendance, confirmations, final fieldwork |
| By the sign-off date | Review, representations, report |
The statutory due dates for the report depend on the entity type, so work back from the meeting date or filing date you have been given.
Reporting stage
The report is under SA 700 (Revised). If the opinion is modified, SA 705 sets out qualified, adverse and disclaimer. SA 706 covers emphasis of matter and other matter paragraphs. For companies, the Companies (Auditor's Report) Order also applies; see the CARO 2020 guide. A layout is in the audit report format template.
Common slippage
- Planning left until after year end
- Materiality not documented or never revisited
- Interim findings not carried into final procedures
- Engagement letter missing; use the engagement letter template
See the statutory audit workflow, working paper practice and the Ind SA reference. Terms are explained in the audit glossary.
Frequently asked questions
Is an interim audit mandatory?
No. It is a choice by the auditor based on size and complexity, though many firms do it for larger clients.
What is the difference between SA 300 and SA 315?
SA 300 covers planning the audit overall. SA 315 covers identifying and assessing the risks of material misstatement.
When is the audit strategy prepared?
At the start of the engagement, before detailed procedures.
Next: key audit matters under SA 701 and concurrent audit.
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