MEANING OF AUDIT PROGRAMME
The preparation of an audit programme is an important part of Audit Planning. Audit programme is a written plan wherein a complete outline of audit work is recorded. An auditor commences his audit work on the basis of the outline, i.e., Audit Programme. This outline is prepared well in advance by the auditor.
Just as Civil Engineer prepares a plan for the construction of a Dam and then all work is done according to the plan in a systematic manner to get success, similarly, an auditor also prepares the outline of audit work and on that basis distributes the work among his staff in order to complete the audit work in a systematic and satisfactory manner. This is called the Audit Programme.
To sum up, An Audit Programme is a written scheme (the plan of action) designed by the auditor, to see that all the books of accounts have been audited properly, the work is over in time, and there is uniformity in the audit work. Every person entrusted with part of the audit work has to put his signature on the part of the work completed by him.
ADVANTAGES OF AUDIT PROGRAMME
The following advantages of Audit Programme can be stated:
(1) Efficient Division of Work-
The auditor can divide the
whole work of the audit among his staff on the basis of competence, ability and
experience off his staff. Senior staff may be given complex assignments as
compared to the junior staff, which can be assigned lighter work, such as
vouching etc.
(2) Fixation of Responsibilities-
The audit programme specifies
the work, its quantity and nature and by whom to be done. Thus, the staff which is involved in finishing a
particular work within a specified time becomes accountable towards its
performance. The auditor can fix up responsibility for any lapse in the work easily
on the concerned person.
(3) Estimate of the Progress of the Work-
The performance of
the assignment entrusted to a particular member of the staff can be reviewed,
its progress can be judged and if the need arises, the whole work may be
reallocated.
(4) Increase in Efficiency-
The audit programme increases the
efficiency of the staff since every member of the staff is allocated clear-cut
duties and he need not enquire about it off and on. This saves time and energy
on his part as well as on the part of others.
(5) Uniformity in Audit Work-
Audit programmes are usually
prepared on the basis of audit work of previous years. This simplifies the task
of the auditor. Not only his time is saved but the preparation of audit
programme keeping in mind the previous
year's audit programmes brings
uniformity in the audit work.
(6) Change in the Audit Staff-
In case the auditor leaves
him in between an employee or member of staff before the completion of
the audit work, the work of such a person can be safely entrusted to someone
else, without disturbing the whole audit programme.
(7) Proof in the Court-
In case the auditor is charged with
negligence by his client and a suit is
filed against him to this effect, the audit programme serves as evidence in the
court to the effect that he has conducted the audit in a systematic and proper
manner. Thus, an audit programme serves as good proof or evidence in favour of
the auditor.
(8) Early Accomplishment of Audit Work-
An audit programme
helps in the smooth conduct of the audit work and helps in its early
completion. Since the auditor knows about his time availability, he can
undertake audit work of other concerns also simultaneously. Thereby, he can
enlarge the scope of his professional work.
(9) Satisfaction of Complete Checking-
When the audit work is accomplished according to the audit programme, the auditor is satisfied that the whole audit work is completed in time and nothing is left out, from being audited.
