Main contents and advantages and disadvantages of Audit Programme
Advantages and
Disadvantages
The advantages
of Audit Programme are:
1. Provides a clear set of instruction on
the work to be done.
2. Provides clear record of work done and
by whom.
3. Work can be reviewed by senior auditor.
4. Work will not be duplicated.
5. No important work will be overlooked.
6. Evidence of work done is available for
use in defending charge for negligence.
7. Audit Programme serves as a shield
against any charge of negligence by a client on the part of the auditor.
8. It provides an assurance that no
material aspect of audit examination has been overlooked.
9. It pinpoints the audit work to be done
by audit staff and that has already been done.
10. IT facilitates in the distribution of work
among the audit staff according to their knowledge.
11. Audit programme of last year serves as a
basis in preparing the audit programme for subsequent year.
12. Before signing the audit report, final
review of work done can be easily made.
13. It ensures the adherence to International
Accounting and Auditing Standards.
14. Responsibility of each audit staff
(articled clerk) is fixed.
Disadvantages of
Audit Programme
The disadvantage
of Audit Programme are as follows:
1. Work may become mechanical.
2. Parts may be executed without regard to
whole scheme.
3. Programme may rigidly followed.
4. Initiative may be lost.
5. Audit staff may not have opportunity of
showing independent thinking, intelligence and initiative due to adherence to
audit programme.
6. Audit programme may not cover
everything that might come up during the course of audit.
7. It may create rigidity in audit
examination if not frequently reviewed and updated.
8. Audit staff is bound to follow audit
programme mechanically irrespective of changes in internal control introduced
by the client.
9. Audit staff may defend by claiming that
a particular audit examination was not provided by audit programme.
10. Fixed auditing programme will have its
own limitations.
11. Clients
staff knowing the extent and methods of checking followed by auditor may devise
means to escape detection of fraud by auditor.
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