What Is An Audit Program And How Should It Be Constructed?


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After the auditor has selected senior and the junior to do will chalk out the program as to what work is to be done by each junior and by himself and the time by which the work is to be finished and this is laid down in audit program. Ascertain the exact scope of duties. Obtain a list of the books in use in the business together with the names of persons in charge of them. Examine carefully the system of book keeping employed and make a special note of any weakness and of the system.

Arrange for an interview with client and at the interview acquire information regarding the general the general routine of the business so that you may follow what lies behind the books and appreciates the practical aspect of all transaction recorded there in.
Ask for a written statement of the system of internal if any, in force in the business, examine it thoroughly and note its weak points so that you may decide the extent to which reliance can be placed upon the system in course of your audit. Examine the various documents such as memorandum and articles of association and the prospectus in case of company or partnership deed.

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