## Audit Programme — Purpose, Disadvantages and Review
### What Is an Audit Programme?
An audit programme is a detailed written plan listing:
- Specific audit tasks/procedures to be performed
- Instructions (extent of checking, sampling plan, etc.)
- Assignment of work among team members
- Space to record completion
It is the operational tool that implements the audit plan.
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### Why Audit Programmes Must Be Reviewed Periodically
An audit programme developed for one year may become obsolete if:
- The client's business policies or operations change
- Internal control systems are modified
- New accounting standards or regulations apply
- Staff changes occur at the client
Risk of not reviewing: If an outdated programme is followed blindly, the audit may be held to have been conducted negligently, exposing the auditor to legal consequences.
> Utility of audit programme = keeping programme + client operations + internal controls under periodic review to remove inadequacies and redundancies.
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### Disadvantages of Audit Programmes
| # | Disadvantage | Description |
|---|---|---|
| 1 | Mechanical execution | Work carried out without understanding the purpose of each step in the overall audit scheme |
| 2 | Rigidity and inflexibility | Old programme followed even when business has changed; staff or internal control changes may require different precautions |
| 3 | Shelter for inefficient staff | Incompetent assistants use absence of specific instructions as an excuse for deficiencies |
| 4 | Kills initiative | Hard-and-fast programmes discourage efficient, enterprising assistants from exercising judgment |
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### How to Eliminate These Disadvantages
- Imaginative supervision of assistants' work
- Receptive attitude from the auditor toward assistants' observations
- Encourage assistants to observe matters objectively and bring significant matters to the supervisor/principal
- Regular updates to the programme to reflect changes in the client's business and internal controls
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### Documentation of Audit Planning (SA 300)
| Document | What It Records |
|---|---|
| Overall audit strategy | Key decisions for properly planning the audit; significant matters communicated to the team |
| Audit plan | Planned nature, timing, extent of risk assessment and further audit procedures |
| Changes to strategy/plan | Significant changes made during the audit, reasons for changes, and final approach adopted |
Auditors may use standard audit programmes and/or audit completion checklists, tailored to the specific engagement.