The document defines an audit program as a set of evidence-gathering procedures that an auditor uses to obtain reasonable assurance that financial statements are free from material misstatement. The main components of an audit program include objectives, procedures, and conclusions for each audit task. There are various types of audit programs such as standard, modified, tailored, and checklist programs. Audit programs guide audit work, provide evidence of planning, and help coordinate and supervise the audit process. However, audit programs can also limit auditor judgment and may become unsuitable for businesses with unique risks or technologies.

1.  Definition of audit programme.
Set of procedures (evidence – gathering steps) that an auditor believes is
necessary to perform to obtain reasonable assurance that the financial
statements are not affected by material misstatements.An audit program is
a set of policies and procedures that dictate how an evaluation of a
business is done. This generally involves specific instructions as to what,
and how much, evidence must be collected and evaluated, as well as who
will collect and analyze the data and when this should be done. These
types of programs are used to check up on things like a business'
performance, finances, economy, and efficiency, and are generally
tailored to a specific business or purpose.
Purposes of audit programme
Guiding audit staff in audit work
Provide evidence of proper planning and recording of audit work to be
done
Provide the basis for coordinating and supervising audit work and
controlling the time spent
Audit programs are important because they standardize the data
collection and evaluation process. By setting out a specific list of steps to
be followed and data to be collected, the program ensures that auditors
collect all the information they need in an efficient manner while under
appropriate supervision. Keeping the process standardized also means
that all the data collected can be used to make useful comparisons
between businesses, departments, and previous years' inspections, since
the same set of data is collected each time. Additionally , having a
program like this in place makes sure that any problems are discovered
promptly and reported to the correct person.
 Main components of audit programme will include the objectives,
procedures and conclusion of each audit work performed.

2. 2 types of audit programme
Standards audit programme (standards working papers are used on all audits
for efficiency and proper delegation, control and review)
Tailored audit programme (different working papers are used to suit the
different types of client’s business
Audit Program are of four types
1- Standard Audit program
2- Modified Audit program
3- Tailor made Audit program
4- Audit program with check list
1-S.A.P
Some auditor’s prepare a standard audit program or make use of what may be
called uniform work papers this type of pre printed audit program is provided to
the audit staff who are expected to conduct the audit strictly according to the
standard instruction. His program may include standard verification programs
for the principal accounts or group of accounts.
2-M.S.P
This program is also printed but covers special sections of work such as that on
cash transactions and the detailed general work. Obviously such pre established
program requires modification to make them applicable to specific situations.
3-T.M.A.P
Some auditors have the practice of preparing their own program for each
situation as the meet it, relying on their own knowledge of auditing techniques
and their past experience to ensure that all essential procedures have been
included
4-A.P.W.CL
Some Auditors prepare their own program and in addition carry a more or less
extensive check list of auditing procedures form which they select those which
the think are most applicable

3. ADVANTAGE AND DISADVANTAGE OF USING AUDIT
PROGRAMME
 Benefits derived from the audit programme…
To obtain a degree of reasonable assurance that the fin statements are not
affected by material misstatements and to make a conclusion on the truth
and fairness of fin statements.
To guide the audit staff in discharging their duties competently and with
due care, i.e. on the nature, timing and extent of the procedures to
perform.
To provide evidence of proper planning and a record of the work done
that conforms to auditing standards.
To provide a basis for delegation and coordinating the audit work.
To control the time spent on gathering sufficient appropriate audit
evidence.
ADVANTAGE OF AUDIT PROGRAMME
SUPERVISION OF WORK:
The editor can judge the efficiency of his audit team with the held of all audit
programs. He is in a position to know the progress of the work. He can see at
any time that what part of the work has been completed and what remains to be
done.
DIVISION / DISTRIBUTION OF AUDIT WORK:
The division of audit works is very useful for the audit staff for maintaining the
difference of works among senior or junior clerks according to their ability and
skill so that the work is divided to get better results.
SYSTEMATIC UNIFORMITY OF WORK:
Audit program helps in settling all the things in advance, so the systematic
uniformity of work is necessary to achieve the desire.
BASIC INSTRUMENT FOR TRAINING:
Audit program is infect a training instruments for the audit staff and also very
useful for the new auditors. It provides training and guidance to him. So it is
rightly called the basic instrument for training for the staff at the time of need.

4. SOLID LEGAL EVIDENCE:
Audit program and audit working papers are solid legal evidence of work done
by every assistant of the audit team. It can be presented in the court of law if
any action is taken against the auditor for negligence. These programmes and
papers proves that the auditor has used his skills and due care in the audit of the
firm so his liability can be reduced
FIXATION OF RESPONSIBILITY:
Audit programmes fixed the responsibilities of the staff. If any error or fraud
remains undetected, the responsibility of negligence will fall on that particular
assistant who has performed that job and no one can blame on each other.
SEVERAL AUDIT MAY BE CONTROLLED:
The auditor controls the audit of various companies at the same time. In the
absence of audit program he cannot supervise them effectively.
EASY TRANSFER:
The principle auditor can transfer to the any other person easily. If one assistant
is unable to continue the work given to him it can be given to another person.
Audit program guides him that what is done and what is remaining.
FINAL REVIEW:
Before signing the report, final Review is made and for this purpose also
auditing program is very useful and any deficiency or missing in steps can be
identified and completed.
USEFUL FOR FUTURE:
The audit programme is very useful in the future. Or completion of an audit, it
serves the purpose of audit record that may be useful for future reference. In
case of auditor is appointed for the same concern in any future time the auditor
can use the same audit programme with some changes.

5. Disadvantages of audit program
Even though audit program has number of advantages, it is not free from
limitations. Some of the major disadvantages of audit program are as follows:
1. Audit Program Harasses To Staffs
All the staffs should perform task within the limitation given in audit program.
So, staffs cannot use their knowledge and calibre which harasses to them.
2. Possibility OF Being Unsuitable
Nature and size of business differs. So, the program which is prepared at the
beginning of the year remains unsuitable. Different organizations may have
their own problems. So, similar type of program may not be applicable to all.
3. Audit Program Increases the Chance of Fraud
Staffs of the client get information about the audit program in advance which
increases the chance of committing frauds. Similarly, it harasses the audit staffs
so they perform the work of audit carelessly which also increases the chance of
committing frauds.
4. Audit Program Is Unsuitable To Small Concern
Small concern has less transactions and work of audit can be completed in short
period of time. So, audit program is not essential to audit such concern.
5. Exclusion of Problems of New Technology
New techniques and technologies are used in the work of accounting. Such
technology creates the problem in the work of audit but such problems and
remedial measures are not included in the audit program.