Audit Programme Meaning – Audit programmes are detailed plan of work prepared by the auditor for the supervision and control of his assistants, before actually beginning the audit. Hence, an audit programme is a systematic, detailed and written plan of the audit techniques to be adopted, on the basis of which the auditor and his staff proceed with their auditing work. The main objective of preparing an audit plan is to maintain a link between the various tasks involved in the audit work. For example, before starting with the building work the building contractor considers various factors such as the plan of the building, the duration in which the work is to be completed, the way in which it is to be proceeded with, the number of labourers to be employed etc. Similarly, an auditor makes a plan of the work to be done or constructs a frame work of his programme, and proceeds with the auditing work within this frame work.
Objectives Of Audit Programme
- Preparing a specific framework for the audit work so that it is possible to complete the audit work within the specified period.
- Division of work among the assistants so that each person is aware of what he is supposed to do.
- Being aware of the progress of work done by employees.
- In case any employee leaves during the audit, then assigning the same work to the person replacing him.
- Removing the possibility of any work being leftout.
- Fixing the responsibility of employees.
Types of Audit Programme
(1) Standard Programme: An audit programme based on a standard format is known as a standard auditing programme. This document is used uniformly in all audits, and there is no need for the auditor to prepare a separate audit programme for each audit. Such a programme is also referred to as a fixed or predetermined or a planned programme. Such a programme may be suitably modified in order to accommodate the specific problems of a particular business.
(2) Tailor-made Programme: A tailor-made programme is one which is prepared separately for each organisation keeping in mind the nature of business, nature of transactions, method of accounting, efficiency of internal control etc. Such a programme is more practical and flexible as compared to a standard programme.