When preparing the audit plan, the auditor should be guided by the results of the client acceptance/continuance process, procedures performed to gain the understanding of the entity, and preliminary engagement activities. Steps that should be performed include: Assess business risks. Establish materiality. Consider multilocations. Assess the need for specialists. Consider violations of laws and regulations. Identify related parties. Consider additional value-added services. Document the overall audit strategy, audit plan, and prepare audit programs