Properly developed audit program helps the auditor to know the progress of work and judge the efficiency of staffs. It is useful and suitable for large business houses with a large volume of transactions. It increases the efficiency of his staff as in that case, the possibility of errors and negligence is minimized.
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. It increases the working efficiency of the employees.
- Saves Time and labor
It is performed on the basis of guidelines and procedures included in the audit program. All the directions which are to be given to assistant are clearly stated in the audit program which helps to complete the task in time. The audit program also helps to conduct the audit of the business in the coming years which saves time and labor.
- Increases Efficiency
All the responsibilities of an auditor are divided among the number of staff considering their skill and intelligence which helps to complete the work of audit properly. It enhances the accountability of audit team members towards work performed by them. Similarly, the works are divided among the assistant staff on the basis of their caliber which helps to increase efficiency.
- Helps to Control
An auditor can compare the work performed by the assistants on the basis of an audit program which helps to control their work if there are any deficiencies. It helps in ensuring that all-important areas are considered while conducting the audit.
- Helps to Maintain Uniformity
Audit program help is setting all the things in advance, so the provides training and guidance to them. Works are divided among the assistant staff; so there is no chance of leaving non-audited statements. If the work of an audit is performed on the basis of audit program every year, uniformity can be maintained in the work of audit which helps to compare the report of various years.
- Helps to Make Responsible
The work of an assistant is clearly defined in the audit program and the assistant puts signature in the completed work. reduces the scope for misunderstanding among team members regarding the performance of audit work. So, if any work is left out, an assistant can be made liable for such work.
- Helps to Maintain Continuity
The audit program clearly shows the completed task and procedures of doing work. So, if any staff leaves the job or remains absent, new staff can easily continue the job of an audit.
- Useful for future and Present as Proof
An auditor can present the audit program as proof if he/she has been accused of misfeasance or negligence and can get clearance from such accusation. It enables the auditor to keep a record of useful information specifically for future audits and references. On completion of an audit serves the purpose of audit record which may be useful for future reference. The audit program can be presented in the court also.