AUDIT BY NEERAJ

Audit Program Advantages of Audit Programme

Meaning Consist of Series of Verification Procedures To be Applied --> To Obtain SAAE --- To Enable Auditor to Instructions Clear set
express Opinion.
Total Prespective of work
One Audit Programme - All business Not same
Not Practicable For All Vary in Assistants Selection
Businesses Nature
Danger of Reduced, Which is high in “mental unwritten plan”
Size
overlooking
Capital Raised
Internal Controls Reponsibility Acceptance. Also work done can be traced backed to assistant
Applicability of Law and Regulations
Because of above factors Progress Can be controlled by Principal. Helpful in managing multiple audits at a time
Scope of Services Differ
not possible to develop one Guide For Audits in succeeding year
Evidence In case of charge of negligence. Exercised reasonable skill and care.
Framing an Audit Consider
Program Nature
Size
Business Disadvantage of Audit Programme
IC
Mechanical Work May become Mechanical
Aim for MEW - Minimum Essential Work - Standard Program Without May be carried out without understanding objective
Later on as audit progress include Situations left out. Understanding
Drop Unnecessary work
Rigidity and Lack of May fail to adapt to changes in the business's operations or IC.
Encourage assistant to be open minded beyond program Adaptability
Instruct --> Note and Report --> Significant Matters --> To Seniors, Partner Or Proprietor of CA Firm
Shelter for On the ground that no instruction in the matter is contained therein.
Inefficient
Assistants
Periodic Review of The Why?
May Kill the hard and fast audit programme can do this.
Audit Program to check its effectiveness in the light of changing circumstances
Initiative of
Cover new aspects.
enterprising
Remove not required.
assistants
Keep the audit program up to date.
If not reviewed
may become obsolete
entire audit may become ineffective
considered as negligence on the part of the auditor
may have to face legal and regulatory consequences
CA INTER/ FINAL
Constructing an Audit Auditor may or may not rely on IC for conducting audit.

AUDIT
Programme Auditor normally has flexibility w.r.t timing of Audit procedures except in few cases. (observing the taking of
inventories by client personnel or verifying the securities and cash balances at the year-end.)

Points to be kept in mind

1. Scope and Limitation LISTEN TO

AUDIT
2. Must be Written with procedures required to implement audit plan
3. Evidence (Best for necessary satisfaction and Reasonably Available)
4. Steps and Procedures (Use only relevant audit techniques)
5. Include - Audit Objective Area-wise and sufficient details and clear instruction for assistants for proper PODCAST BY NEERAJ
BY NEEERAJ ARORA
execution
6. Consider Possibilities of Error - Include looking for potential mistakes or misrepresentations in the data
7. Coordinate procedures to be applied on related items
Audit Programme To Audit Prog designed to provide evidence by describing Procedures and techniques.
provide Audit Evidence Best evidence for a given depends on Prof. Judgement.
Cash - Counting
Pledged - Banker’s Certificate

REVISION VIDEOS
Variety of fields for Audit Types
Evidence Documentary | Physical | Management Explanation | Third Party Explanations | Arithmetical Calculations |
State of IC | Relationship among financial and non financial data | Subsidiary and Memorandum records |
MoM | Subsequent action by client.