Natalia Tucker is an auditor at Dawson & Associates. Natalia is excited because she has just been given her first opportunity to plan an audit engagement. The audit will be for a local brokerage firm and per the terms of agreement, it includes an audit of the financial statements as well as the firms internal controls. Although this is Natalias first experience in planning an audit, she has previously worked on numerous audit teams. Natalia knows that as the audit planner, she is expected to develop a carefully detailed plan to ensure the audit will be conducted in compliance with professional standards. Determined to prove her capability of managing the assignment, Natalia starts to make a list of everything she needs to do.

In one to two fully developed paragraphs, use the scenario to respond to the following:

• Identify the three stages of the audit engagement Natalia will include in the audit plan.
• Describe the audit tasks included in each of the three stages Natalia should include in the plan.
• Describe three factors Natalia should consider that may influence the nature, timing, or extent of the audit engagement. Include an example of each factor in your description.