AUDIT PROGRAMME

AUDIT PROGRAMME

These are schedule prepared by the auditor of a company setting out those basic procedures to be followed during the course of the audit in order to obtain audit evidence from which the auditor will draw his conclusion on financial statement audited. The programme serves as a guide to audit staff member during the course of the audit.

TYPES OF AUDIT PROGRAMME

1.     Compliance Audit Programme: These are those audit programme test or procedures that intends to obtain audit evidence as to whether the internal control system established by management of the company are constantly being followed critically and practically by the staff of the company.

2.     Substantive Audit Programme: These are those audit programme that contains audit test or audit procedures which seeks to obtain audit evidence as to whether the transaction of the company are complete, accurate and to ascertain the cost, authenticity, valuation, existence, beneficiary ownership and presentation of asset and liabilities.

Auditor at the audit planning stage normally prepares audit programmes. This initial audit programme will be auditor at the audit planning stage normally prepares audit programme. This initial programme will be kept under review during the course of audit and will be amended as the auditor becomes aware of new fact. It must be noted that audit programme are not finalistic in nature and that auditor should watch out for the need of the constant review of the text procedure contain in the audit programme,

Advantages of Audit Programme

1.     Audit programme serves as a guide to audit staff member during the course of the audit.

2.     It provides a means for ensuring that the audit work is put into action at the execution stage.

3.     The use of audit programme serves as a means for a training of audit staff

4.     It helps to direct control and coordinate effectively the audit work.

5.     It ensures that the audit work is based on the decision of the experience members of the audit economic growth. A partner or a manager,

Disadvantages of Audit Programme

1.     Where audit programme are not properly prepared, they may mislead the audit staff because some appropriate procedures that are considered important may not be carried out.

2.     When standard audit programme are used irregularities may not be detected especially where the client staff is aware of the test and procedure contained in the programme.

3.     Where a standard audit programme is used it may significantly reduce the initiative of the audit.

4.     It must be able to support the auditor Opinion.