Question

“All experienced auditors would design exactly the same audit program for a particular audit engagement.” Do you agree? Explain. Remember to complete all parts of the problems. Do not forget to show the necessary steps and explain how you attained that outcome.

Answer 1

Audit Programme

Audit program is a detailed plan of work prepared by auditor before starting audit. It contain detailed information about various steps and audit procedures to be followed by the audit. It contain nature, timing and extend of audit procedure. Following factors should also be noted.

• Audit program includes audit procedures
• Detail information of works to be performed by audit staff.
• Auditor should prepare audit program considering the nature of business of the client.
• Audit program should fix the time period to complete job assigned to the assistants.
• It also contain materiality and risk level
• Assistant should sign after the completion of his/her job.

Following factors should be considered while preparing audit program

1) Nature of business

2) Materiality of item

3) Level of audit risk

4) Time available

5) Scope of work etc.

Conclusion: - As per the details given above, it is sure that same audit program may not be designed for a particular audit engagement. It may be revised under different circumstances. If an item is material in nature, the auditor has to extend his audit procedure. It provide a basic plan for audit. It may not be exactly same in all circumstanses.