Meaning of Elastic Audit Programme
The disadvantages of audit programme can be minimised and maximum benefits from the audit programme can be obtained, if made elastic. Elasticity, here means, that the audit programme is the programme can be changed as per the requirements under the given circumstances. It often happens that auditor receives certain amount of suggestions from the staff and it becomes beneficial to him to make suitable alterations in the audit programme prepared by him. In such cases the audit programmes will be called Elastic Audit Programmes.
Actually, if one is to get the maximum benefit out of the audit programme, it should be made flexible. By doing so the audit staff shall be encouraged and good suggestions will be forthcoming from them. Secondly, the present age is not a static age. It is rather changing. Daily there are changes in the circumstances and the working conditions. Therefore, it is always better to adjust the audit programme in the light of the changing conditions. By this the quality of audit is improved. Therefore, the auditor should prepare elasitc or flexible audit programme.
Advantages of an Elastic Audit Programme
The following advantages of an Elastic Programme can be stated :
All advantages of audit programme are achieved:
A flexible or elastic audit programme not only obtains all the advantages of an audit programme but also checks the disadvantages of it. Flexibility in the audit programme increases the moral or the employees of the auditor. They complete their work conscientiously.
Possibilities of errors and frauds minimised:
If a fixed audit programme is drawn out, and the employees of the enterprise come to know about it, they will prepare the accounts carelessly and there is also possibility of planned errors and frauds by them. To put their such plans to end flexible audit programme becomes necessary.
Inclusion of adjustments according to the changed circumstances:
The present day circumstances change too frequently. Under such conditions fixed audit programme does not serve the purpose in fulfilling the objectives of the enterprise. Therefore, audit programme must be such which can be adjusted according to the changed circumstances.
Plans of selfish employees checked:
The employees of the enterprise come to know about the audit programme prepared in the beginning of the commencement of audit. Some of the selfish employees take advantage of this audit programme and may plan for frauds. If audit programme is flexible such employees shall not get success in their nefarious designs.
Limitations of an Elastic Audit Programme
Flexible or elastic audit programme does not mean changes in it as and when desired by the auditor. If this is so, the audit programme will lose its originality and selfish people will insist for a change in it for their selfish ends. Thereby, it will lose its importance. Therefore, it is necessary for an audit programme to be fixed. But rigidity should be upto a limit only. It should not mean no change come what may. Once the audit programme is prepared the audit work is to be carried out as per the programme, even when the circumstances desire otherwise. This attitude is a dangerous one. Therefore, a good audit programme requires rigidity cum elasticity, so that audit work is carried out properly.
