Planning is the essential first step in the audit process and the foundation of a successful audit. There are 8 steps highlight below.

1. Determine engagement objectives and scope.

2. Understand the auditee, including auditee objectives and assertions.

3. Identify and assess risks.

4. Identify key controls.

5. Evaluate adequacy of control design.

6. Create a test plan.

7. Develop a work program.

8. Allocate resources to the engagement.

Assume that you are planning an audit; for each step, discuss:

1. Why the step is important.

2. What could go wrong if the step is not performed.

Provide 8 paragraphs for this assignment and discuss the 2 questions above in each paragraph for each step.