What it is
A first audit has the same objective as a recurring audit and more to learn. The planning memo should show how the firm decided to accept, what the predecessor said and how opening balances will be supported.
The memo covers acceptance and background, a table of opening balance risks and procedures by account, overall strategy and the conclusion on opening balances.
When to use it
- First audit of a new client.
- Change of auditor, including a reaudit.
- Before any work on opening balances begins.
What’s inside
- Acceptance, predecessor communication and workpaper access section
- Opening balances plan by account area
- Materiality, risk, specialist and timetable section
- Space for the conclusion on opening balances
Standard cited
This template follows AU-C 510 / AS 2101, AS 2610. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use. See AU-C 510 explained.
Questions
Is predecessor communication required?
For issuers PCAOB AS 2610 sets the communications between predecessor and successor auditors. For nonissuers follow AU-C 510 and your firm policy.
Can the auditor rely on the predecessor’s work?
Reading predecessor workpapers can provide evidence, but the memo should record what was read and why it was or was not enough.
Related templates
- Predecessor Auditor Communication Letters
- Audit Planning Memo (AU-C 300)
- Client Acceptance and Continuance Form
- Audit Engagement Letter (AU-C 210)
Last updated 11/06/2026. All free templates.