What is Audit Programme? Audit programme is a list of work to be done by an auditor. The time period for the completion of audit work is stated. The duties are assigned to audit staff. The procedure is prepared that will help to verify each item of statements. The duplication of work is avoided and an attempt is made to overcome the possibility of omissions. The changes of duties do not affect the pace of the audit work. The auditor is able to have control over the audit staff and their work. The cost of audit remains in line with the audit tee. The auditor can’ handle an audit of many concerns at the same time. Every aspect of financial activities requires audit programme. The combination of all such programmes is considered as master audit programme. The auditor can make changes from time to time in order to meet the changing requirement of nature and size of business.
DEFINITION OF AUDIT PROGRAMME
1. Howard F. Stettler says that audit programme is an outline of all procedures to be followed in order to arrive at an opinion concerning a client’s work financial statements.
2. Professor Meigs says that audit programme is a detailed plan of audit work to be performed, specifying the procedure to be followed in verification of each item in the financial statements and giving the estimated time required.
3. Montgomery says that audits programme is the list, generally in detail, of steps to be performed in the course of an examination. It controls the nature and extent of examination: aids arranging, timing and distributing the work, guards against possible omission and duplication and provides part of the evidence of work done.
PURPOSE OF AUDIT PROGRAMME
1. NO OMISSION: The purpose of audit programme is to complete whole audit work. There should be no omission on the part of audit staff. The auditor can prepare a plan of action in such a way that all books Of accounts and relevant record are checked.
2. ISSUE INSTRUCTIONS: The purpose of audit programme is to issue instructions to audit staff. Principal auditor issues instructions. The audit clerks can follow the instructions in order to complete their work.
3. CONTROL AUDIT WORK: The purpose of audit programme is to control the work of audit. It relates to supervision and direction. The auditor can watch activities of audit clerks while work is going on. The pace of audit must be according to the time fixed for audit.
4. RESPONSIBILITY OF AUDIT STAFF. The purpose of audit programme is to fix responsibility of audit staff for carelessness. When given work is completed according to established standards there is no responsibility. There may be negligence of duty during audit work.
5. EVIDENCE FOR AUDIT WORK: The purpose of audit programme is to develop an evidence for work done by audit staff. It is a written record of audit work. The number of books and other record examined is stated in it. The auditing clerk puts his signatures as evidence.
6. GUIDE TO AUDIT STAFF: The purpose of audit programme is to guide audit staff in completing their work. The date, time and quantity of work are stated. The audit staffs are engaged according to the amount of work.
7. TIMETABLE: The purpose of audit programme is to prepare a timetable for whole audit work. The auditor is successful if he completes audit work within the stated time period. The efficiency is noted with performance. The time fixed for work is most important.
8. CONTROLS COST OF AUDIT: The purpose of audit programme is to control cost-of audit work. The fee is settled with the client. The auditor is able to control the cost of audit work to be done within fixed time. The cost of an audit should not exceed fee of an auditor.
9. HELPS AUDIT: The purpose of audit programme is to facilitate audit work. The timetable is a guideline for every person to complete his part of audit work. The questions can be asked about doubtful entries. In this way flow of work is maintained.
10. BASIS FOR REPORT: The purpose of audit programme is to conduct an audit. This proof becomes the basis audit report. The auditor is able to write a report on the business matters.
11. AUDIT DECISION: The purpose of audit programme is to make audit decision. The audit programme collects basic information relating to any business. It is a systematic approach to compile data for business.
12. FUTURE REFERENCE: The purpose of audit programme is to prepare a record for future reference. The data may be needed for planning and checking.
CONTENTS OF AUDIT PROGRAMME
1. NAME: The audit programme contains the name of a client. The auditor can write the name of a business. There is need of complete address of concern client.
2. OBJECTS: The audit programme contains objects of business enterprise. There are various objects of any business unit. A small business has few objects while large companies have many objects.
3. DATE: The audit programme contains the date of start of an audit. The auditor can consult the client before fixing audit date. It must be convenient to management. The audit programme can show the details
Of audit work date wise.