AUDIT

PROGRAMME
Harshada Pawar – 01
Sejal Nandanwar – 06
 • AAA8 suggest that the auditor should prepare written
audit program setting forth the procedures that are
required to implement the audit plan.

Introduction
• Audit programme is a detailed plan of applying audit
procedures in given circumstances with instructions for
appropriate techniques to be adopted for
accomplishing the audit objectives.
• It is a planning made by the auditor for the purpose of
conduct of audit.
• It gives instructions, hints and serves as a guidance for
audit staff so as to how they should proceed with the
audit work.
• It is a guide for arrangement and distribution of audit
work among the audit assistants.
 • An outline of all procedure to be followed in
order to arrive at an opinion concerning
client’s financial statement
Definition - Stettler
• An detailed plan of auditing work to
performed, specifying the procedure to be
followed in verification of each items in the
financial statements and giving the estimated
time required. - Megis
 Factors 1. Internal control
2. Client's activities

considered 3. Cost benefit

4. Limitation of the assignments

for audit 5. Evidence

6. Verification

programme 7. Possibility of error

8. Coordination
9. Assistants
10. Other auditors
 Context of • Name and object of the undertaking
• Date of commencement & duration of audit
an audit • System of accounting, Internal control & check

programme and effectiveness

• Previous year’s accounts with the report of the
auditors
• Outline of various books of account to be
examined
• Types and numbers of transactions to be selected
• Nature of documents to be examined
• Persons in charge of audit work
• Date wise schedule of work to be carried.
 Advantages Disadvantages
1. Instructions to audit staff 1. Deficiency
2. Overview of work
2. Incomplete
3. Selection of staff
4. Systematic 3. Insufficient evidence
5. Audit control 4. Mechanical
6. Guidance
7. Evidence
5. No adequate reward
8. Uniformity in work 6. No applicable to all
9. Enhance efficiency
7. Rigidity
10. Facilitates reporting
11. Review of work
8. Shelter to inefficient
12. Fixed responsibility
13. More clients