## The Audit Programme
An audit programme is a written list of examination and verification steps to be applied during an audit. It is designed so that the inter-relationship between steps is clearly shown, built around the assertions in the financial statements.
### Advantages of an Audit Programme
| Advantage | Explanation |
|---|---|
| Clear instructions | Provides assistants with a complete and clear set of work instructions |
| Total perspective | Essential for major audits to give an overall view of work to be performed |
| Rational work allocation | Enables assignment of assistants based on capability through defined, segregated tasks |
| Systematic execution | Significantly reduces risk of overlooking books/records compared to a 'mental' plan |
| Individual accountability | Assistants sign the programme, accepting responsibility for their specific work |
| Progress control | The principal monitors progress across multiple audits via initiated programmes |
| Future reference | Serves as a guide for the succeeding year's audit |
| Legal evidence | Serves as evidence that the auditor exercised reasonable skill and care if negligence is alleged |
### Matters to Consider When Preparing an Audit Programme
1. Stay within the scope and limitation of the assignment
2. Prepare a written programme setting forth procedures to implement the audit plan
3. Determine evidence reasonably available and identify the best evidence for each objective
4. Apply only those steps useful for accomplishing the specific verification purpose
5. Include audit objectives for each area and sufficient detail to serve as instructions for assistants
6. Consider all possibilities of error
7. Co-ordinate procedures applied to related items
### One Programme Cannot Fit All Businesses
Businesses vary in: nature, size and composition; efficiency and operation of internal controls; and the exact nature of the service to be rendered. For these reasons, a single audit programme applicable to all businesses under all circumstances is not practicable.
### Sample Audit Programme Format
| Column | Purpose |
|---|---|
| S.No. | Step number |
| Nature of Procedure | Description of audit step |
| Extent of Check | Sample size or 100% check |
| Basis of Sample | How sample was selected |
| Done By | Name/initials of team member |
Example — Purchases Programme (GST-registered manufacturer):
| S.No. | Procedure |
|---|---|
| (a) | Vouch purchase invoices of raw material from purchase records |
| (b) | Trace invoices into the account books of the firm |
| (c) | Verify selected purchase invoices on the GST portal |
| (d) | Trace invoices in stock records to confirm addition to raw material stock |