Objectives of Audit Programs

The objective of an audit is to express an opinion on financial statements. When developing an audit program, the internal auditor and its associated audit team should start by outlining the audit’s objectives, goals, and obligations. Audit Programs checking the proper distinction between capital and revenue nature of transactions.

Objectives of Audit Programs

Audit program is the detail work plan of audit. So, it has the following objectives:

(1) Audit program helps to check systematically the books of accounts which helps to conduct a fair audit. It helps direct planning of the audit report and is based on the policies, procedures, and guidelines unique to the company.

(2) The audit program specifies the time period clearly, which helps to complete the work of audit in less time. It analyses and validates the post or pre-payment verification process for selected large transactions.

(3) Checking arithmetical accuracy of books of accounts, verifying posting, casting, balancing, etc. Assistant should sign after the completion of work which specifies the responsibility and accountability of staffs . It also helps to prove the completion of task.

(4) Review of the proposed scope of audit preparing a proper plan. Checking arithmetical accuracy of books of accounts, verifying posting, casting, balancing, etc. It assesses the accuracy of accounting (classification of transactions) for large transactions.

(5) The audit program shows the way to the new staff to perform the work of audit. It may relate to and outline how the auditors will maintain efficiency, professionalism and a specific code of conduct during audit procedure.

An audit program covers various steps of auditing in an audit program like the assessment of internal control, ascertaining the accuracy, vouching and verification, valuation of assets and liabilities, scrutiny of accounts, presentation of financial statements, and submission of reports and related disclosures. It provides true and fairness of operating results presented by income statement and financial position presented by the balance sheet.