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Describe an audit program and the purposes it serves

A. The first generally accepted auditing standard of field work requires, in part, that "the work is to be adequately planned." An effective tool that aids the auditor in adequately planning the work is an audit program.

Required: Describe an audit program and the purposes it serves.

b. Auditors frequently refer to "standards" and "procedures." Standards are measures of the quality of the auditor's performance. Standards specifically refer to the 10 generally accepted auditing standards. Procedures relate to acts that the auditor performs while trying to gather evidence. Procedures specifically refer to the methods or techniques the auditor uses in conducting the examination.

Required: List at least eight different types of procedures an auditor would use in examining financial statements. For example, a type of procedure an auditor would use frequently is the observation of activities and conditions. Do not discuss specific accounts.

Solution Preview

A. An audit program is a step-by-step plan for procedures to be performed as part of the audit process for a client. The program is customized to the client for the year being audited. Prior to the selection of procedures, the audit supervisor or manager would have spoken with the client in general terms about issues during the audit period. Often, there is an ongoing relationship during the year which provides information about which procedures will be needed to test client records. The ...

Solution Summary

The solution explains exactly what an audit program is, how and when it is implemented, who is in charge of it and how it is used. There is a list of nine different types of procedures commonly in audit programs and what they intend to accomplish