Audit program:
It is written scheme of the exact details of the work done by the audit and his staff in connection with the particular work. All the work which is specify to each member of the audit is written in the audit program. Audit programs guides the audit personnel in the work of audit to be done. Following are the methods by which the program is carried out.
1. Complete program:
Complete programe is on the file. Complete items are ticked off by the particular assistant. Assistant knows how to do and what he has to do. Assistant also knows that by which date each item is to be completed.
2. Individual program:
According to the business nature the auditor prepares the programe for each assistant is such cases.
3. No any advance program:
In this case auditor never prepares the programe in advance but according to progress of the work he allows to go.
Advantages of audit program:
Supervision of work:
The auditor can judge the efficiency of his
audit team, by having a well develop audit program. He is in the position to
know the progress of work. He can see at any time that what part of the work
has been completed and what remains to be done.
Distribution of work:
Audit program is very useful in distributing the
audit work properly among the member of the audit team according to their
talent.
Uniformity of work:
Audit program help is setting all the things in
advance, so the provides training and guidance to them.
Basic instrument for
training:
Audit program is very useful for the new
auditor. It provides training and guidance to them.
Legal evidence:
Audit program is legal evidence for work done by
every assistant of the audit team. Audit program can be presented in the court
of law if any action is taken against the auditor of negligence.
Fixation of
responsibility:
If any error of fraud remains undetected the
responsibility of negligence will fall on that particular assistant who has performed
that job.
Several audits may be
controlled:
The auditor controls the audit of various
companies at the same time. In the absence of audit program, one cannot
supervise them effectively.
Easy transfer:
If one assistant is unable to continue the work
given to him it can be given to another person. Audit program the way for him
that what is done and what is remaining.
Final review:
Review is made before signing the report final
and for this purpose also audit program is very useful.
Useful for future:
On completion an audit it serves the purpose of
audit record which may be useful for future reference.
Disadvantages of audit program:
Ø Not comprehensive:
Auditors may have covered the whole field but it cannot said with certainty that all the necessary word have been done.
Ø Rigidness:
Audit programe loses its flexibility while each business has separate problems so audit programe cannot be laid down for each type of business.
Ø Not initiative:
It kills the opening of capable persons the assistant cannot suggest improvement in the plan.
Ø Not suitable for small audit:
It has been testify that audit programe is not suitable for small audits.
Ø New problems overlooked:
Time to time new problems arise which may be over looked.
Ø Fraud:
If work is carried out according to pre determined plan fraud may be facilitated.
Ø Omission of work:
Work may be hurried in order to complete a required schedule involving omission of one aspect or other.
1 comments:
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