Audit Programme: Concept, Types, Functions, Advantages & Disadvantages

Introduction

An audit program consists of an appropriate auditprocedure to achieve these audit objectives.

Audit programmes are prepared while planning theaudit. At the planning stage, auditors will need toprepare audit tests to test the account areas.

Audit Program

The audit programmes set out what the auditor will test in relation to each audit assertion

The auditor should set out in the audit programme:

the objective of the test;

what constitutes an error;

the population to be covered.

Things to consider while establishing objectives

• Management priorities

• Commercial and other business intentions

• Characteristics of processes, products, and projects and any changes to them

• Management system requirements

• Legal and contractual requirements and other requirements to which the organization is committed

• Need for supplier evaluation

• Needs and expectations of interested parties, including customers

• Auditee’s level of performance, as reflected in the occurrence of failures, incidents or customer complaints

• Risks to the auditee

• Results of previous audits

• Level of maturity of the management system being audited

• Auditing organization risks

TYPES OF AUDIT

PROGRAM

ANUSHKA KEDIA144/22C

1. STANDARD AUDIT PROGRAM

2. MODIFIED AUDIT PROGRAM

3. TAILOR MADE AUDIT PROGRAM

4. AUDIT PROGRAM WITH CHECK LIST

The following items should be included in an audit programme :

•Name of the client

•Audit commencement of data

•Duration of audit

•Accounting system of the client

•Internal control system

•Previous auditors report

•Links planning and execution

•Provides framework for supervision and accountability

•Helps transfer expertise to junior staff

•Facilitates administrative control

Advantages of Audit ProgrammeSupervision and Distribution and Uniformity of Work

Basic Instrument for Training

Legal Evidence

Fixation of Responsibility

Several Audits may be controlled

Easy Transfer

Final Review

Useful for Future

Disadvantages Of Audit Programme

Disadvantages

Not Comprehen

sive

Rigidness

No Initiative

Too Mechanical

Not Suitable for

Small Business

New Problems

over Looked