Risk assessment and planning procedures

Risk assessment procedures are performed to identify and assess the risks of materiality misstatement by obtaining an understanding of the entity and its environment including its internal control.
Planning the audit involves establishing the overall audit strategy and developing an audit plan and includes among other things considering the timing and performance of risk assessment procedures and related activates as well as the planned responses to the assessed risks. The overall audit strategy and audit plan are not necessarily discrete or sequential processes but are closely inter-related since changes in one may result in consequential changes to the other.