An audit programme a detailed outline of the auditing work to performed, specifying the procedures to followed in verification of each item in the financial statement and giving the estimated time required. As each step in the audit programme completed the date. The auditor’s initials and the actual time consumed may be entered opposite the item. Audit programme thus serve as a useful tool both in scheduling and in controlling audit work.
The inclusion of detailed audit instructions in the programme gives assurance that essential steps in verification will not over looked. These written instructions enable inexperienced auditors to work effectively with less personal supervision. Than would otherwise required, and thus permit seniors and mangers to concentrate upon those features and the discriminating exercise of professional judgement.
Kinds of Audit Programme
There is a complete programme on the file from which the items to completed by a particular assistant ticked off. Thus the assistant knows what he has to do and by which date each item to completed.
In other case the auditor chalks out a programme for each assistant according to the nature of the business
No Programme in advance
In third case, the auditor never prepares a programme in advance. But may allow it to go as the audit work progress.
Objects of Audit Programme
- Ensure that no point of the routine has omitted or overlooked
- Provide the assistants with clear instructions as to what and how much they have to do.
- To get the audit work conducted by several assistants at the same time by allocating different portions of the work them.
- Enable the principal to exercise proper control over the whole affair by having full knowledge about the progress various audits.
- To identify the assistants responsible for each section of the work and then to fix responsibility for any error passed.
- To serve as an evidence of the extent of checking carried and duties performed.
Before preparing an audit programme and auditor decides exact scope of his duties and obtain a list of all the books used in the business with the names of persons responsible for writing and maintain them. He used also find out the weakness of the system of book keeping and internal check employed in the business after critically examining them. It would be very much relevant for him, if he goes through the last years balance sheet and auditor‘s report and other important legal documents connected with the business.