AUDIT PROGRAMME
An audit programme is a detailed, written statement designed by the auditor indicating the
work to be performed by the audit assistants, specifying the time limit for completion of
work, instructions and guidance to the audit staff. In short, it is a tool for planning, directing
and controlling the audit work.
Prof. Meigs defines an audit programme as, “an audit programme is a detailed plan of the
auditing work to be performed, specifying the procedures to be followed in verification of
each item and the financial statements and giving the estimated time required.”
FEATURES OF AN AUDIT PROGRAMME
The features of an audit programme may be of the following:
1. It is a set of procedures to be adopted to conduct the audit more efficiently.
2. It is a written scheme designed by the auditor.
3. It is a blue print of the audit work.
4. It facilitates delegation of work, based on the capabilities of audit staff.
5. It acts as evidence in future for the audit work being performed.
6. It specifies the work to be done by the audit staff, the manner and time limit for
completion of the work.
OBJECTIVES OF AUDIT PROGRAMME
The following are the objectives of audit programme:
1. To provide clear instructions to the audit assistants specifying the nature of work to be
performed and fixing the time span for completion of each work.
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2. To facilitate coordination among various parts of audit work.
3. To ensure uniformity in the performance of audit work and to avoid duplication and
repetition of work.
4. To attain a fair allocation of work among audit team.
5. To fix responsibility and accountability of each audit assistant.
6. To serve as a guide for planning the audit work in future.
7. To serve as evidence in future showing the date of completion of audit work, methods
or procedures undertaken, persons involved in completion of audit work etc.
ADVANTAGES OF THE AUDIT PROGRAMME
1. An audit program helps in ensuring that all-important areas are considered while
conducting the audit.
2. An audit program helps an auditor in the allocation of work among its team members
according to their skills and competency.
3. It enhances the accountability of audit team members towards work performed by them
4. An audit program also reduces the scope for misunderstanding among team members
regarding the performance of audit work.
5. It helps the auditor in checking the status of audit work, its progress, how much it is left
for performance while conducting the audit.
6. Auditor prepares audit working papers which contains a record of various audit
procedure applied which serves as evidence against the charge of negligence.
7. Audit program enables the auditor to keep a record of useful information specifically for
future audit and references.
DISADVANTAGES OF AUDIT PROGRAMME
1. Rigidity: There is no set standard audit program that can be applied in the case of every
entity. However, programs differ for different types of entities. Every entity has its own
problems. Therefore, we cannot apply for a single audit program in the case of all
business entities.
2. Reduces the Initiative of Efficient Staff: – A program reduces the initiatives of
efficient and competent staff. Thus, staff members cannot make changes in the audit plan
and cannot make suggestions to it.
3. Audit Work becomes Mechanical: The program becomes mechanical when it ignores
other aspects like internal control.
4. Overlooking New Areas: A program may overlook the new areas. With the change in
time and technology, new problems may arise which an audit program may not consider.
Question: Write a program for the audit of cash.
Ans. A program for cash involves the following:–
Checking of the opening balance
The checking of petty cash
The checking cash book
Checking cash receipt and payment voucher
Authorization for cash payments
Comparison with the bank statement
Surprise check of cash balance
Cash summary
Examination of direct deposits by the third parties
