## Audit Programme

### Definition

An Audit Programme is a:

Detailed plan
Consisting of a series of verification procedures
Applied to the financial statements and accounts of a given company
For the purpose of obtaining sufficient and appropriate evidence
To enable the auditor to express an informed opinion

> The audit programme is the ground-level working document — it tells who does what, when, and how much.

---

### Points to Keep in View While Framing an Audit Programme

Element	Description
Audit Objective	The specific assertion or objective each procedure addresses
Audit Procedures to be Applied	The specific procedures — inquiry, observation, inspection, confirmation, etc.
Extent of Check	How many items / what sample size
Special Instructions	Instructions based on past experience of the auditee
Allocation of Work Among Team Members	Who is responsible for each procedure
Timing of Check	When each procedure is to be performed (interim vs year-end)

---

### Why One Audit Programme Cannot Fit All Businesses

Evolving a single audit programme for all businesses is not practicable because:

1. Businesses vary in nature, size, and composition

2. Work suitable for one business may not be suitable for others

3. Efficiency and operation of internal controls vary from entity to entity

4. The exact nature of the service to be rendered by the auditor varies from assignment to assignment

---

### The Standard Programme Concept

Even though one programme cannot fit all, an auditor should frame a programme that:

Has regard to the nature, size, and composition of the business
Considers dependability of internal controls and the given scope of work
Aims at providing for a minimum essential work — termed a standard programme

The assistant (team member) must keep an open mind — they should not apply procedures mechanically but should remain alert to circumstances specific to the entity.

Worked example

### Example 1

Example — Audit Programme Entry:

For 'Trade Payables' of XYZ Ltd, the audit programme entry might read:

Objective: Completeness and valuation of trade payables
Procedure: Reconcile supplier statements to ledger balances for the top 20 suppliers by value
Extent: 20 suppliers (covering 70% of total payable balance)
Timing: Post year-end (February)
Assigned to: Mr. Rajan (Semi-qualified assistant)
Special instruction: Last year, two suppliers had unrecorded invoices — pay special attention to GR/IR suspense account

### Example 2

Example — Why One Programme Cannot Fit All:

The audit programme for a small sole-proprietor retail shop and a large listed manufacturing company cannot be the same: the retail shop may have no internal controls at all (requiring extensive substantive testing), while the manufacturing company may have robust ERP-based controls (allowing reliance on controls with reduced substantive testing). Nature, size, and internal control environment differ fundamentally.

⚠️ Common exam mistakes

Confusing audit programme with audit plan — the plan describes the nature/timing/extent at a high level; the programme is the detailed step-by-step instruction document for the team.
Writing a generic audit programme and applying it to all clients without customising for the client's nature, size, and internal controls.
Omitting 'allocation of work among team members' and 'timing' from the audit programme — these are essential elements, not optional.
Thinking the audit programme is only for substantive procedures — it covers risk assessment procedures and other procedures too.

Reference: SA 300; Audit Programme Principles — SA 300 — Planning an Audit of Financial Statements (ICAI); General Auditing Standards

Now that you've read this — what's next?

Move from understanding → mastery in 3 clicks. Each option below picks up from this lesson's topic.

🔥 Drill 5 Qs on this → ✍️ Adaptive practice →

Audit Programme — Definition, Contents, and Construction

Worked example

⚠️ Common exam mistakes