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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