The approach I have been taught is pretty much the same as automan does, except I never use orbital sanders on my guitar, most of my sanding is by hand with felt of rubber backing blocks, less chance of creating waves.
I also use wood backing blocks but I make sure to join or plane the sanding surface to assure a completely flat surface. A 1"x1"x6-12" block with 50 to 80 grit sandpaper is very effective for getting the final shape dialed in.
(edit: I do use a bench mounted orbital sander, it is the hand held orbitals I do not use.
One thing I will mention is I glue the fingerboard on to the neck blank and then use it as the guide for cutting the neck taper (nut width to end of neck width). The back, or what I think of as the profile, I do entirely by hand. I like that it makes the neck the most personal part of the guitar.
And with the japanese Shinto saw rasp and Dragon files I have been introduced to, it is an absolute joy to cut and shape the wood.
suggested search terms: rasps, files, Shinto, Safe-T-Plane, carving, shaping, (and of course) necks,