Audit Programme

An audit programme refers to a design structured to plan out details for the auditor and its team to perform the audit. The Audit Programme specifies the tasks to undertake by each member, the time for specific tasks allotted, and the rules to be followed by the entire team.

The Audit programme defines the functions of planning, directing, supervising, and elaborately controlling the audit work. It helps in doing the work systematically and efficiently. The details related to the Audit Programme are elaborated on below.

What are the attributes of the audit programme?

The Audit programme comprises of the following:
  • It has a design described in written format by the auditor to perform the audit.
  • It lays out procedures and rules for conducting the audit.
  • Provides allotment of specific tasks to the team members
  • It lays out the time duration in which the task must perform.
  • It includes a series of steps in a systematic format.
  • It prevents muddling up amongst team members.

What details form part of the audit programme?

The below-mentioned details form part of the audit Programme:

  • Details of the client and their business operations.
  • Date and duration of audit work. 
  • Review the system for internal checks.
  • Check the accounting system and internal controls followed by the company.
  • Examine earlier auditor reports, remarks, objections (if any).
  • Check the statutory books and registers, P/L, Balance Sheet of holding/subsidiary/ associates (if any)
  • Details of officials of the company
  • Appointment letter and resolution.
  • MOA, AOA, and other deeds as applicable.
  • Details of figures/items/unadjusted errors are not common in the accounts.
  • Adoption of audit procedures as per the applicable laws.
  • Review of financial transactions.
  • Compliance with statutory requirements.
  • Draft opinion of the audit.
  • Materiality in terms of planning and performing the audit function.
  • The response of auditor towards assessed risks.
  • Evaluating misstatements recognized during the audit.

Why is the audit programme useful?

The Audit Programme is useful in several ways:
  • It is useful for providing instructions to the audit team members and minimizing the scope for confusion among the members while performing the audit.
  • It acts as a blueprint for the audit function.
  • Through this programme they can focus on critical areas.
  • Systematic distribution and delegation of the work 
  • Define the responsibilities of the audit team 
  • Can easily access the work progress 
  • It can serve as evidence against any situation of nonperformance or omission.
  • This can be beneficial for future references.

The Audit programme is a constructive tool to systematically arrange the work process, which allows the audit team to complete their task more effectively and within a specified time duration. There can be instances where this type of program brings rigidity while performing the tasks, leading to losing sight of new areas. These hurdles can be corrected by flexibly forming the audit program allowing the other aspects to be included in the program as and when required.

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