AUDIT PROGRAMME

Team Project Work

BACHELOR OF COMMERCE
Submitted by

ROSHIKA.K
Register No: CB20C 69234
MANIMEGALAI. R
Register No: CB20C 69291
MAHALAKSHMI.K
Register No: CB20C 69289
MAHALAKSHMI.K
Register No: CB20C 69290

Under the guidance of

Ms.A. GEETHA.M.Com., M.Phil., B.Ed.,

PG & RESEARCH DEPARTMENT OF COMMERCE

SHRIMATI INDIRA GANDHI COLLEGE

National Accredited at "A" Grade (3rd cycle) by NAAC

An ISO 9001 : 2015 Certified Institution
TIRUCHIRAPPALLI-620 002
Ms.A. GEETHA.M.Com., M.Phil., B.Ed.,
Assistant Professor, PG & Research Department of Commerce,
Shrimati Indira Gandhi College,
Tiruchirappalli -620 002.

CERTIFICATE

This is to certify that the group project work done under my guidance
entitled "AUDIT PROGRAMME" submitted by ROSHIKA.K
(CB20C69234), MANIMEGALAI.R (CB20C69291), MAHALAKSHMI.K
(CB20C69289), MAHALAKSHMI.K (CB20C69290) in partial fulfillment of
the requirement for the award of the degree of Bachelor of Commerce for the
academic year 2022-2023, this project work is the original work of the
candidates.

1.
2.
3.
4.
Signature of the candidate Signature of the
Guide

Signature of the Head of the Department

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 ACKNOWLEDGEMENT

First and foremost I thank God Almighty for his grace and mercy in enabling
me to complete this project work successfully. I dedicate my acknowledgement to
those who have been the pillar of strength and source of constant support.

I express my thanks to SHRIMATI INDIRA GANDHI COLLEGE for giving me an

opportunity to carry out this project. I am extremely grateful to the principles Dr. P.
GAJALAKSHMI M.Sc., M.Phil., Ph.D for providing me with all facilities for making this
work a grand success.

I take this golden opportunity to express my heart full thanks to our Head of
the Department of Commerce, Dr. A.HEMALATHA, M.Com, M.Phil., Ph.D.,
for her innovative suggestions.

I am greatly indebted to express my sense of gratitude to my respectful guide

MS.A.GEETHA.M.Com.,M.Phil., B.Ed.,for her valuable guidance, inspiration and
support from the inception of project work.

Finally I would like to extend my cordial thanks to my lovable family

members, friends and faculty members who encouraged me a lot throughout the
project.

ROSHIKA.K
MANIMEGALAI.R
MAHALAKSHMI.K
MAHALAKSHMI.K

2
 LIST OF CONTENT

CHAPTER CONTENT PAGE.NO

CHAPTER 1 INTRODUCTION

CHAPTER 2 REVIEW OF LITERATURE

CHAPTER 3 COMPANY PROFILE

CHAPTER 4 DATA ANALYSIS &

INTERPRETATION

CHAPTER 5 FINDINGS &

CONCLUSIONS

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 BIBLIOGRAPHY

LIST OF CHART

SERIAL NUMBER CONTENT PAGE NO.

Best Cement Companies in India As

4.1 Per Production capacity (2023)

Best Cement Companies in India As

4.2 Per Market Cap (2023)

Best Cement Company In India per

4.3 Bag Cement Price (2023)

India Cement Market Regional

4.4 Analysis in 2023(%) &Type Segment
Overview

INDIAN CEMENT MARKET

4.5 Market Size In Million Tons

4
 INDIAN CEMENT MARKET
4.6 Key Players

CHAPTER-1

INTRODUCTION

It is desirable that in respect of each audit and more particularly for bigger audits
an audit programme should be drawn up. Audit programme is a list of examination
and verification steps to be applied and set out in such a way that the inter-
relationship of one step to another is clearly shown and designed, keeping in view
the assertions discernible in the statements of account produced for audit or on
the basis of an appraisal of the accounting records of the client.

DEFINITION

An audit programme consists of a series of verification procedures to

be applied to the financial statements and accounts of a given company for the
purpose of obtaining sufficient evidence to enable the auditor to express an
informed opinion on such statements.
In other words, an audit programme is a detailed plan of applying the audit
procedures in the given circumstances with instructions for the appropriate
techniques to be adopted for accomplishing the audit objectives.

OBJECTIVE OF AN AUDIT PROGRAMME:

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The objective of an audio programme are to:

● Determine compliance with company policy and procedures.

● Determine the effectiveness of the policy and procedures.
● Determine the accuracy of reports generated by department personnel.
● Evaluate the adequacy of internal controls.
● Determine compliance with applicable state and federal regulations of the function
under review.
● Search for value-added recommendations that improve the efficiency and
contribution of the function under review.

SCOPE OF AUDIT

The audit shall include an audit of the books, accounts, and

bank balances of the board of education/board of trustees, and of any officer or employee
thereof, and of any organization of public school pupils conducted under the auspices of the
board of education/board of trustees/renaissance school project.

MEASURES TO OVERCOME THE LIMITATIONS OF AUDIT

PROGRAMME

1. The audit programme should be altered as per the internal control system to be reviewed
from time to time and from firm to firm.

2. The auditor should also revise it when his client has adopted a new line of action.

3. The assistants should be consulted while preparing the audit programme.

4. A rigid and stereotyped programme should be avoided.

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5. Audit assistants while they are actually using the audit programme should really feel that
they actually have some discretion in practice.

Hence, to guard against the disadvantages, it is usually suggested that an audit programme
should be divided into two parts, viz.,
● Work common to all types of audit, and
● Work relating to a particular audit.
This will, therefore, leave some scope for modification to be made in the audit programme
whenever necessary.

AUDIT METHODOLOGY

Its Audit Methodology complies with the Standards for the Professional Practice of Internal
Auditing issued by The Institute of Internal Auditors.
We have undertaken several audits for government agencies and received positive feedback
on the quality, timeliness and engagement approach to ensure that audits are conducted
professionally, efficiently and effectively.

ADVANTAGES AND DISADVANTAGES OF AN AUDIT PROGRAMME

The advantages of an audit programme are:

(a) It provides the assistant carrying out the audit with total and clear set of
instructions of the work generally to be done.
(b) It is essential, particularly for major audits, to provide a total perspective of
the work to be performed.
(c) Selection of assistants for the jobs on the basis of capability becomes easier
when the work is rationally planned, defined and segregated.
(d) Without a written and predetermined programme, work is necessarily to be
carried out on the basis of some ‘mental’ plan. In such a situation there is
always a danger of ignoring or overlooking certain books and records. Under

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a properly framed programme, the danger is significantly less and the audit
can proceed systematically.
(e) The assistants, by putting their signature on programme, accept the
responsibility for the work carried out by them individually and, if necessary,
the work done may be traced back to the assistant.
(f) The principal can control the progress of the various audits in hand by
examination of audit programmes initiated by the assistants deputed to the
jobs for completed work.
(g) It serves as a guide for audits to be carried out in the succeeding year.
(h) A properly drawn up audit programme serves as evidence in the event of any
charge of negligence being brought against the auditor. It may be of
considerable value in establishing that he exercised reasonable skill and care
that was expected of a professional auditor.

Some disadvantages are also there in the use of audit programmes but most
of these can be removed by following some concrete steps.

The disadvantages are:

(a) The work may become mechanical and particular parts of the programme
may be carried out without any understanding of the object of such parts in
the whole audit scheme.
(b) The programme often tends to become rigid and inflexible following set
grooves; the business may change in its operation of conduct, but the old
programme may still be carried on. Changes in staff or internal control may
render precaution necessary at points different from those originally decided
upon.
(c) Inefficient assistants may take shelter behind the programme i.e. defend
deficiencies in their work on the ground that no instruction in the matter is
contained therein.
(d) A hard and fast audit programme may kill the initiative of efficient and
enterprising assistants.

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All these disadvantages may be eliminated by imaginative supervision of the work
carried on by the assistants; the auditor must have a receptive attitude as regards
the assistants; the assistants should be encouraged to observe matters objectively
and bring significant matters to the notice of the supervisor/principal.

CHAPTER-2
REVIEW OF LITERATURE

The literature review is divided into the following sections:

● Risk-based auditing
● The audit program

Risk-based auditing

Puttick and Van Esch (1992:59) present four audit approaches:

● The balance sheet approach
● The systems based approach
● The transaction flow or cycle approach
● The risk-based audit approach
The risk-based approach requires an understanding of risks within an
organization/ audit that are in turn addressed by systems of internal control; the
converse approach would be to identify a set of controls and then determine if
these are applied throughout the organization (Spencer Picket 2003: 12).

Puttick and Van Esch (2007:194) present two models for risk identification,
traditional, and the business risk analysis approach
● With the traditional approach the auditor would first identify both internal

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and external factors that could result in material errors occurring at an
overall financial statement level; after this process these factors would be
related to their potential impact, at an assertion level, in respect of balances
or classes of transactions contained in the financial statements. Example of
assertions are existence, valuation, completeness.
● The business risk analysis approach requires obtaining the business
processes, to consider the risks attached to these processes, and to determine
how these risks are identified and managed by the directors and
management of the entity.

Puttick and van Esch (2007:195) list the benefits of the business risk analysis
approach:
1. There is a perception by the client that the recommendations obtained
This approach adds value.
2. An effective and efficient audit process with better risk management.
3. It improves the work-flow timing, resulting in few problems with meeting
audit report deadlines.
4. The auditor’s focus on business and control issues leads to greater staff
satisfaction within the audit firm.

According to Hayes et al (2005:23) business risk results from significant

conditions, events, circumstances, actions and inactions that may impede the
company’s ability to execute its strategies; furthermore, auditors are required to
include business risks in the planning process. They conclude that assessing risk is
the core of the audit.
To sum, given multiple audit approaches, this study applies the risk-based
approach to auditing. In paragraph 1.8 ‘Assumptions’ the following two
assumptions are presented:
● Risk identification is a key step in the design of an audit program.
● The audit program is the cornerstone of the audit.

By identifying the term ‘audit program’ as a common denominator in the above

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two assumptions, and then removing the term, what remains is that risk-
identification becomes the cornerstone of the audit, which correlates with Hayes
et al (2005:23) who state that assessing risk is the core of the audit.

THE AUDIT PROGRAM

According to Mautz (1964:170) the audit program fulfills two purposes: it serves
as a plan of attack on the verification problem at hand; it also serves as a record
for the audit work performed.

To Cooper (1974:33) the benefits of an audit program are:

1. It’s a detailed plan of work to be done; once done it’s a permanent record of
the tests carried out and by whom.
2. By cross-referencing the audit program to the internal control questionnaire,
evidence is presented that the audit program addresses the company’s
systems of accounting and internal control.
3. It enables work to be organized, delegated and controlled.
4. The current audit program can be used as a basis for drawing up future audit
programs.

According to Dickinson (1982:84) the audit program is the auditor’s plan of

action, further noting that each audit program should be designed to meet the
specific needs of each particular audit.
Advantages of an audit program according to Dickinson (1982:85) include:
1. It facilitates the review by the audit manager and partner.
2. It emphasizes the essential and important procedures for each client.

Per ISA 300.12 the auditor shall include in the audit documentation
(a) the overall audit strategy,
(b) the audit plan.
To sum, the audit program serves many purposes and a reasonable deduction

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would be that an audit cannot proceed without an audit program. The audit
program is a fundamental focus of this study and the objective of this study is to
research a methodology and audit model that contributes to the effective design of
an audit program applicable to performance auditing.
Grounded theory is a systematic theory used in research in the social sciences
emphasizing theory generation from data.
. Put otherwise, the procedures of
grounded theory intend to develop an integrated set of concepts that provide a
thorough theoretical explanation of the social phenomenon under study (Corbin
and Strauss, 1990:5). Grounded theory was developed by sociologists Barney
Glaser and Anselm Strauss in 1967.
Grounded theory is mainly used in qualitative research, which is to say a focus on
phenomena that occur in natural settings, and it involves studying said phenomena
in all their complexity (Leedy and Ormrod, 2005:133).
Grounded theory differs from normal theory in that traditional research begins at
researching and developing a hypothesis. With grounded theory the first step is
data collection, then the key points are marked with a series of codes, which are
extracted from the text, then the codes are grouped into similar concepts in order
to make them more workable. From these concepts, categories are formed; these
categories are the basis for the creation of a theory, or a reverse engineered
hypothesis.

The specific approach of data analysis to be undertaken is that proposed by

Corbin and Strauss (1990:12) to analyze data, namely:

1. Open coding: to divide data into segments and then scrutinize for
commonalities reflecting categories or themes. The purpose is to give the
analyst new insights by breaking through standard ways of thinking about
interpreting phenomena reflected in the data. The method includes asking
of any data ‘What is this about? What is being referenced here?’ in
order to identify, name, categorize and describe the phenomenon within
the text.

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2. Axial coding: Interconnections are made among categories and
subcategories via a process of inductive and deductive thinking.
3. Selective coding: The interrelationships of categories are combined to
create a sense of order and meaning, usually around a core category

CHAPTER-3
PROFILE OF THE STUDY

CEMENT COMPANIES
● RAMCO CEMENTS
● ULTRA TECH CEMENT
● DALMIA BHARAT

RAMCO CEMENT
● Introduction
Ramco Cements Limited (formerly Madras Cements Limited) is a part of the
Ramco Group with headquarters in Chennai, India. Ramco Cements has 5 Integrated Cement
manufacturing units, 6 grinding units, and 1 Packing terminal across India. The company also
produces Ready-Mix Concrete(RMC) and Dry Mortar products. The company has a Research
Centre (Ramco Research & Development Centre) in Chennai and operates wind farms in
Tamil Nadu and Karnataka.
The Ramco Cements Limited

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HISTORY OF RAMCO CEMENT

Ramco Cements was established as Madras Cements in 1961 by Shri. P.A.C. Ramasamy
Raja, an industrialist and the founder of Ramco Group of Companies. The first plant
commenced operation at Ramasamy Raja Nagar Plant, Aruppukkottai, Virudhunagar District,
Tamil Nadu. They are the first to adopt dry process kiln technology and vertical roller mills
which help in energy efficiency.

OPERATIONS

The company's main product is Portland cement, manufactured in eleven production facilities
that include Integrated Cement plants and Grinding units with a current total production
capacity of 21 MTPA.

It manufactures and markets Ordinary Portland Cements (OPC) and Blended Cements (PPC).

● The company has Integrated Cement plants at

1.Alathiyur (in Tamil Nadu)
2.Ariyalur (in Tamil Nadu)
3.Kolimigundla (in Andhra Pradesh)
4.Jayanthipuram, Jaggayyapeta (in Andhra Pradesh)
5.Virudhunagar (in Tamil Nadu)

● Grinding units at
1.Uthiramerur (in Tamil Nadu)

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2.Valapady (in Tamil Nadu)
3.Kolaghat (in West Bengal)
4.Visakhapatnam (in Andhra Pradesh)
5.Haridaspur (in Odisha)
6.Mathod (in Karnataka)

● and Packing unit at

1.Nagercoil (in Tamil Nadu)

DETAILS

The Ramco Cements Limited - Integrated Cement Plant at Ramasamy Raja Nagar
Plant,
Virudhu Nagar, Tamil Nadu.
Type: public
Traded as: BSE: 500260 NSE: RAMCOCEM
Industry: Building Material, Power Generation
Founded: 1961
Founder: P A C Ramasamy Raja
Headquarters: Chennai, India
Area served: South and East India
Key people: Venketrama Raja, Managing Director, A. V. Dharmakrishnan, CEO

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Products: Cement
Dry Mortar Products
Ready Mix Concrete
Revenue: Increase INR 59.80 billion (2021–22)
Parent: Ramco Group
Website: www.ramcocements.in

ULTRA TECH CEMENT

● Introduction
UltraTech Cement Limited is an Indian cement company based in Mumbai.
Its is the largest manufacturer of gray cement, ready-mix concrete (RMC) and white cement
in India with an installed capacity of 116.75 million tonnes per annum.

UltraTech Cement Limited

HISTORY OF ULTRATECH

In February 2016, Bombay High Court rejected UltraTech's plan to acquire two cement plants
from Jaiprakash Associates. In 2015 the court passed the Mines and Mineral Development
and Regulation Act after which the company began to make plans to acquire several cement
plants as a whole by acquiring Jaiprakash Associates.

MERGERS AND ACQUISITIONS

● 2013 - Acquired Jaypee Group's Gujarat cement unit for ₹3,800 cr.

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 ● 2017 - Acquired Jaiprakash Associates's six integrated cement plants for
₹16,189 cr.

● 2018 - Entered into a scheme of arrangement with Century Textile and

Industries to demerge Century's cement business into ultratech.
Nov 2018 - Acquired Binani Cement for ₹7,266 cr.

DETAILS

Type: Public
Traded as: BSE: 532538, NSE: ULTRACEMCO, BSE SENSEXConstituent,
NSNIFTY 50 Constituent
Industry: Building materials
Founded :1983
Headquarters: Mumbai, Maharashtra, India
Key people: K.C.Jhanwar, Managing Director
Products: Cement
Revenue: Increase ₹63,743.10 crore (US$8.0 billion) (2023)
Operating income: Decrease ₹10,619.90 crore (US$1.3 billion) (2023)
Net income: Decrease ₹5,064 crore (US$630 million) (2023)
Total assets: Increase ₹91,837 crore (US$12 billion) (2023)
Total equity: Increase ₹54,380.20 crore (US$6.8 billion) (2023)
Number of employees: 22,000
Parent: Aditya Birla Group
Website: www.ultratechcement.com

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DALMIA BHARAT
● Introduction
Dalmia Bharat Group (DBG) is an Indian conglomerate, which traces its origins to
the businesses established by brothers Ramkrishna Dalmia and Jaidayal Dalmia in eastern
India in the first half of the 20th century. In the 1930s, the group merged with the businesses
of the Sahu Jain family to form the Dalmia-Jain Group. In 1948, the two families decided to
split the businesses; the Dalmia businesses were further divided between Ramkrishna and
Jaidayal.
DALMIA BHARAT GROUP

HISTORY OF DALMIA BHARAT

The Dalmia Group of companies traces its origins to Ramkrishna Dalmia and Jaidayal
Dalmia. The two brothers were born in Jhunjhunu Rajasthan in Agarwal family,the name
Dalmia comes from the name of their ancestral village in present-day Haryana. The Dalmias
established a group of businesses in East India during the first half of the 20th century.
These businesses included a sugar mill in Danapur and a commodity trading business in
Calcutta.
In 1932, Ramkrishna Dalmia's daughter married Shanti Prasad Jain of the wealthy Sahu Jain
Family. Subsequently, Shanti Prasad and the Dalmia brothers worked together to expand the
business, resulting in the formation of the Dalmia-Jain Group. By the end of 1940, the group
was operating several sugar mills, cement plants, chemical factories, engineering plants and a
paper mill.

The Dalmia-Jain Group challenged ACC's monopoly in the Indian cement industry by setting
up cement factories all over India (including the present-day Pakistan). The Group also
ventured into other businesses; its subsidiaries included Bharat Bank, Bharat Fire and

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General Insurance, Lahore Electric, Govan group of companies, two cotton mills, a dairy, and
three Andrew Yule jute mills. In 1946, Ramkrishna Dalmia bought out Bennett, Coleman &
Co. Ltd., the publisher of The Times of India; which was later sold to the Jains after a split in
the Dalmia-Jain Group.

By 1948, differences had developed between the Dalmias and the Jains. On 12 May 1948, the
two families worked out the details of a split at the family house of the Jains in Mussoorie.

On 31 May 1948, the Dalmia-Jain Group was dissolved, splitting into what were colloquially
known as Dalmia Group (divided between Ramkrishna and his brother Jaidayal) and Sahu
Jain Group.

DETAILS

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Industry: Conglomerate
Founded: 1930; 93 years ago
Founder: Jaidayal Dalmia
Headquarters: Kolkata, West Bengal, India
Key people: Jai Hari Dalmia & Yadu Hari Dalmia(Directors)
Pradeep Kumar Singh(Managing Directors)
Products: Refractories, Sugar, Cement
Revenue: ₹83 billion (2020)
Net income: ₹30.44 billion (2020)
Number of employees: 99,545
Subsidiaries: Starium Innovative Healthcare (1.4%)
Website: www.dalmiabharat.com

CHAPTER-4
ANALYSIS AND INTERPRETATION OF THE DATA
4.1.10 Best Cement Companies in India As Per Production capacity (2023)

S.NO. Cement Company Production Capcity (MTPA)

1. Ultratech Cement 102.75

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 2. Shree Cement 37.9

3. Jaypee Cement 33.8

4. ACC 33.41

5. Ambuja Cement 29.65

6. Dalmia Cement 26.5

7. Ramco Cement 16.45

8. Birla Cement 15.5

9. J K Cement 14.7

10. India Cement 14

4.2.10 Best Cement companies in India As Per Market Cap

S.NO. Cement Company Market Cap In Cr.

1. Ultratech Cement 167,889.62

2. Shree Cement 76,436.34

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 3. Ambuja Cement 71,920.07

4. ACC 41,063.44

5. Dalmia Cement 24,492.83

6. J.K.Cement 17,932.80

7. Ramco Cement 15,122.71

8. Nuvoko Cement 10,607.54

9. JK Lakshmi Cement 5,143.36

10. India Cement 5,060.62

4.3.Best Cement Company In India per Bag Cement Price (2023)

Cement Brand Per Bag Price In Rupees

Ultratech 365-430
Cement

Ambuja 340-420
Cement

ACC Cement 326-450

Shree Cement 345-390

Dalmia Cement 370-450

Birla Cement 350-400

Ramco Cement 370-430

India Cement 328-350

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 Binani Cement 360

Note- The cement price per bag vary as per the location.

4.4.India Cement Market Regional Analysis in 2023(%) &Type Segment

Overview

INDIAN CEMENT MARKET

4.5.MARKET SIZE IN MILLION TONS

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 4.6. KEY PLAYERS

CHAPTER-5

CONCLUSIONS

This paper provided an analysis about auditing. The main focuses of the paper were audit
plan, risk and materiality, and internal control. The findings regarding these components were
supported by the relevant scholarly academic publications. Based on the literature review it
was found that each of these auditing components are of a great interest for any auditing
process. In addition, given the dynamics of the companies in the modern globalized world,
the latter components should be approached in a dynamic manner.

To obtain reasonable assurance, the International Standards on Auditing (ISAs) require the
auditor to obtain sufficient appropriate audit evidence to reduce the risk of giving an
inappropriate audit opinion when the financial statements are materially misstated, in this
way allowing the auditor to draw reasonable conclusions on which to base his audit opinion.

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Under the ISAs, an effective audit should be performed by adopting a risk-based approach
that seeks to identify and assess specific risks of material misstatement concerning the
financial statements of an entity and addresses them with audit procedures designed to result
in audit evidence that is sufficient, relevant and reliable.

FINDINGS

As a preliminary indication of the feasibility of the model, initial development

efforts produced a model yielding output values consistent with the beliefs of the partner
regarding evidence evaluation and conclusions in testing accounts receivable on the
engagement. Additionally, sensitive analyses revealed that output values do not vary
considerably when numerical assessments of beliefs are combined into a categorical scale.
These results suggest that the elicitation of beliefs may not be a difficult problem, since
auditors are accustomed to using such scales (e.g., “high”, “medium”, or “low” risk) rather
than numerical values.

BIBLIOGRAPHY

● B.N. TANSON, S.SUDHARSANAM, S.SUNHARBAHHU. (PRACTICAL

AUDITING).
● THEODORE J.MOCK, UNIVERSITY OF CALIFORNIA. (AUDIT
PROGRAM PLANNING).
● RAJENDRA P. SRIVASTAVA, UNIVERSITY OF KANSA. (AUDIT
PROGRAM).
● SHAFER, G., P. P. SHENOY and R. P. SRIVASTAVA. 1988. AUDITOR'S
ASSISTANT: A KNOWLEDGE ENGINEERING TOOL FOR AUDIT
DECISIONS. PROCEEDINGS OF THE 1988 TOUCHE ROSS
UNIVERSITY OF KANSAS SYMPOSIUM ON AUDITING
PROBLEMS.

WEBSITE

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 www.google.com
www.civil lead.com
www.wikipedia.com
www.ultratech.com
www.dalmiabharat.com
www.ramco.com

QUESTIONNAIRE

1. Explain audio programmes.

2. Mention the objectives of the audit programme.
3. Advantages of an audit programme.
4. What are the measures to overcome the limitation of an audit
programme?
5. Disadvantages of an audit programme
6. Explain some companies by using audit programme format
7. Definition of audit program
8. Scope of audit programme
9. Write down methodology about the audit programme
10. Explain the review of literature about the audit programme.

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11.Give some examples about audit programmes.

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