Gurkem Jennings, a recent university graduate, is interested in becoming an external auditor. Gurkem does NOT understand the topic of planning the audit. Gurkem has read that during the planning phase of the audit, the audit team evaluates the audit risk, sets overall materiality and performance materiality, and reviews the prior years audit files to determine changes in processes and risks at the client since the prior year. Gurkem does NOT understand what those items have to do with planning.

Required: Provide five reasons why the audit team should perform these activities during the planning of the audit.