The fee charged by the auditor is less as compared to continuous audit. The scope of the contents of the audit program covers all the routine checking and vouching. Not Suitable For Small Audit :- It has been proved that audit programme is not suitable for sail audits. It provides training and guidance to him. Uniformity Of Work :- Audit programme helps in settling all the things in advance, so the uniformity of work can be achieved. In any case, an audit procedure should talk about how often, reaction paths for nonconformances, logistics management, responsibilities and authorities, and proficiency requirements of audit staff if the requirements aren't stated elsewhere.
It can be presented in the court of law if any client is taken against the auditor for negligence. This updating requires more time and resource devotion to the plan, which would be better used in other productive activities. The auditor can point out the weak areas of management. Some auditors would dispute the need for this detailed knowledge to be gained. However i understand that it is costly and time consuming tom implement such a programme.
Accounting staff tricks: The auditor applies various methods for checking accounting books accounting staff can play trick in recording transaction after having knowledge of auditing. The audit staffs come after one year. It deals with the same accounting and interpreting of the high-quality perfection. It is because the auditor makes the consideration and conducts the meetings that are to be held regarding the audit. Several Audits may Be Controlled 8. All the work which is assigned to each member of the audit team is written in the audit programme. It is critical, analytical and the investigation that is done leads to heavy work on ideas and adaptable methods.
For this, the auditor needs to analyze all the financial statements to check the financial position of the entity. Audit has give many advantages do different class. Rigidity An audit plan follows a standard approach and set patterns. The work may be divided among. It helps in increasing the goodwill that might keep track of the collected data. Easy Transfer :- If one assistant is unable to continue the work given to him, it can be given to another person.
Legal Evidence :- Audit programme is a legal evidence of work done by every assistant of the audit team. It is the correctness of the reviews of the logic. Easy Transfer :- If one assistant is unable to continue the work given to him, it can be given to another person. How much else you say depends on what the standard you'd be registering to requires, how much you want to promise and how much detail you are willing to express. Not Comprehensive :- Auditors may have covered the whole field but it can not be said with certainty that all the necessary work have been done. Disadvantages of Audit Program : If audit program is not properly check out it will give the following disadvantage. So, if any work is left out, assistant can be made liable for such work.
Value of business: The event of purchase has to be identified within the management and by the sales team. Classification of the transaction is handled properly and timings are recorded on the exact dates. Provisions in the budget: The provision in budget results in the event of sales, profits, and business and sometimes account for the loss. It does not encourage the audit staff to suggest improvement in plan or procedures for work and thus may be less effective in long run. Such technology creates the problem in the work of audit but such problems and remedial measures are not included in the audit program.
Errors will be removed before preparing financial statements. This carries greater authority standards for the account to be authorized. Money on contract basis: Here the money involved is on a contract basis that compromises certain related functions. For accessing and to influence moral values one has to restrain themselves from performing fraudulent activities. Audit programme facilitates better control and supervision of audit work. He can see at any time that what part of the work has been completed and what remains to be done.
Thus an audit programme is a written scheme prepared by the auditor to distribute work among his own staff. Transfer of audit clerks: It is useful for auditor to transfer the work of auditor to another clerk in case of emergency any audit clerk can go on leave. If any error is found in the audit work, the person responsible for such mistake can be easily found out. The effective internal check is helpful for auditor. He can prove through the audit programme that he has conducted his work with due care and diligence. The auditors may fail to discover frauds.
Final audit is also known as a periodic audit. It helps in the evaluation of further discussions. These may gravely obstruct the expense of all the employees. The benefit of the internal audit is that proper accounting system is introduced. All the important areas will be covered in the audit programme and thus there will be no chance of omitting any important area while conducting the audit. It is impossible to conclude absolutely that judgmental estimates are correct.