Audit Program is the list of steps, that is to be followed by audit staff to obtain sufficient audit evidence. An auditor prepares a plan after the selection of senior and junior staff allocating the jobs to them, mentioning when to start, how to do the work, etc. This plan is known as an audit program. It is a set of instructions, which audit staff pursues, for the proper execution of the audit.
When developing an audit program, the internal auditor and its associated audit team should start by outlining the audit’s objectives, goals, and obligations. It’s objectives help direct planning of the audit report and is based on the policies, procedures, and guidelines unique to the company. Basically, it guides with the procedure through checklists and tracking the plan which makes auditor to easily plan up.
This program planning is usually a continual and iterative process. An auditor should include all the procedures in written form, objectives of each sector and all the directions which are to be given to the staff which helps to control their works and helps to implement such programs into action. It contains details regarding the relevancy of evidence, materiality level, risk tolerance, measure of the sufficiency of the evidence.
Following are the facts regarding the meaning of audit program:
- The audit program is a detailed work plan which includes the time of doing work and how to do the works.
- It includes audit procedures, contents of the program will vary by the scope and nature of the audit, as well as by industry,
- It estimates the duration to complete the audit task, and determines the evidence reasonably available and identifies the best evidence for deriving the necessary satisfaction.
- Senior staffs prepare this program for junior staff on the basis of the nature of the business.
- Generally accepted points are included in this program. Co-ordinate the procedures to be applied to related items.
- Junior staff put tick marks in the completed tasks.