181 Planning Memorandum

The 181 Planning Memorandum is used to formally document and communicate the agreed understanding of the audit engagement. It consolidates all key planning elements, including objectives, scope, risks, methodology, resources, timelines, and stakeholder considerations. This document ensures alignment between the internal audit team, management, and the audit committee regarding what will be audited, how the audit will be performed, and how assurance will be delivered. It serves as the primary planning reference for the engagement and provides a clear foundation for execution.

The objective of the Planning Memorandum is to provide a comprehensive and structured summary of the audit approach, ensuring that all planning decisions are clearly documented, reviewed, and approved before fieldwork begins.

Planning | 181 Planning Memorandum can be found within 180 Planning on the Planning page.

The Planning Memorandum is structured into multiple sections, accessible via the Document Map, allowing users to navigate easily between key planning components. Each section captures a specific aspect of the audit approach and collectively forms a complete planning record.

The following key sections can be found on this page.

Engagement information

Captures foundational details such as:

• Department or process under review
• Planned start and end dates

Engagement objectives and scope

Defines:

• The audit objectives
• Processes or areas to be reviewed
• Scope exclusions
• Engagement boundaries and limitations

Risk assessment

Links to 165 Risk and control matrix

Audit methodology

Documents how the audit will be performed, including:

• Techniques to be used
• Sampling approach

Resources and timing

Outlines how the engagement will be delivered, including:

• Audit team members
• Estimated hours
• Key milestones
• Deliverables and due dates

Communication plan

Defines how communication will be managed throughout the engagement, including stakeholder interactions, reporting timelines, and escalation protocols.

Key stakeholders

Captures key individuals involved in or impacted by the engagement, including:

• Auditees
• Management sponsor
• Audit committee contact
• Stakeholder inputs and concerns

• Open 181 Planning Memorandum from the engagement file
• Complete each section using the Document Map for navigation
• Capture engagement details, objectives, and scope clearly and concisely
• Document key risks and align them to planned audit focus areas
• Define the audit approach, including techniques and sampling methods
• Allocate resources, estimate effort, and define timelines and milestones
• Record key stakeholders and any relevant stakeholder input
• Define the communication plan for the engagement
• Review the full document to ensure consistency and completeness
• Complete section and document-level sign-offs

Important tips

• Ensure alignment between objectives, risks, and audit procedures
• Be specific and practical when defining scope and exclusions
• Clearly link risks to planned audit focus areas
• Use realistic timelines and resource estimates
• Document stakeholder expectations early to avoid misalignment
• Maintain consistency across all planning sections
• Use the Document Map to ensure no sections are incomplete

Completion of the planning memorandum ensures that the audit approach is fully defined, documented, and approved. It provides a clear roadmap for the engagement, enabling the audit team to proceed confidently into execution with aligned expectations and a well-structured plan.