## Constructing an Audit Programme

An audit programme is a written document that sets forth the procedures needed to implement the audit plan. It is the operational backbone of the audit — it converts strategy into action steps and also serves as a control tool over assistants.

### Points to Keep in Mind While Constructing an Audit Programme

#	Point	Why it Matters
1	Stay within scope and limitation of the assignment	Prevents over-auditing and scope creep
2	Prepare a written audit programme setting forth all needed procedures	Provides a verifiable trail; ensures nothing is missed
3	Determine evidence reasonably available and identify the best evidence	Ensures satisfaction is derived efficiently
4	Apply only steps useful for the specific situation	Avoids wasteful, generic procedures
5	Include audit objectives for each area with sufficient detail as instructions for assistants	Controls proper execution; guides junior staff
6	Consider all possibilities of error	Ensures completeness of coverage
7	Co-ordinate procedures applied to related items	Prevents duplication and ensures consistency

### Key Insight — Dual Role of the Audit Programme

It is a planning tool (what to do and how)
It is also a supervision/control tool (ensures assistants follow instructions unfailingly)

This dual role means the programme must be both comprehensive (covers all risks) and precise (gives clear instructions to assistants).

Worked example

### Example 1

RTP May 2025 / PYP May 2024 (4M): CA Atul of ATL Pvt. Ltd. (manufacturing) needs to construct an audit programme. The 7 points above directly answer what he must keep in mind — scope, written procedures, best evidence, situation-specific steps, objectives with instructions, error possibilities, and co-ordination of related items.

### Example 2

PYP May 2024: CA R (Bakes Ltd.) vs CA P (Time Ltd.): CA R uses one programme for both companies. CA P correctly insists on a separate programme because the two companies differ in volume, nature of business, and internal controls. The 7 construction points still apply, but they must be applied independently to each entity.

⚠️ Common exam mistakes

Confusing 'written audit programme' with 'audit plan' — the programme is the detailed how-to; the plan is broader.
Forgetting that 'only useful steps' means you must tailor procedures to the client — do not copy-paste from a standard checklist blindly.
Omitting audit objectives for each area — this is specifically needed to guide assistants, not just for the engagement partner.
Treating co-ordination of related items as optional — failure to co-ordinate leads to contradictory conclusions across audit areas.

Reference:

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