Audit Strategy, Planning and Programming, Advanced Auditing Assignment Help

Advanced Auditing - Audit Strategy, Planning and Programming, Advanced Auditing

Audit Strategy, Planning & Programming

Any activity which is undertaken without a plan is bound to be ineffective. Planning involves in auditing which is use for developing an overall plan for expected scope or conduct of audit or developing an audit programme showing the timing, nature or extent of audit procedures. Planning is a type of continuous procedure or plans can have to be revised in the light of changes in circumstances, as the audit proceeds. That is because plans should cover the following areas that are:

I.   Establishing expected degree of reliance on the internal controls.

II.  Acquiring knowledge of the client's accounting systems, business or related internal controls.

III. Coordinating the work to be performed.

IV. Determining the nature, timing or extent of audit procedures.

An audit programme is a type of predefined detailed plan of the auditing on which the work to be performed and specifying the procedure to be followed in verification of each item in the financial statement, the time framed to be followed in conducting the audit and allocation of the audit staff. An audit programme is also contains the audit objectives for each area of work to be performed. That is why, the audit programme is written plan for the conduct of an audit specifying that what work to be done, by whom to be done and when to be done.

An audit programme consist a series of verifications procedure to be followed to the financial statements. The audit programme is also consist the accounts of a given company for the purpose of obtaining sufficient or appropriate evidence to enable the auditor to express an informed opinion on such statements.

Now, in these days standard audit programme are available. But the auditor shall not use these programme in a mechanical manner or must formulate these programme on the basis of knowledge of the clients business & nature of controls operating in the organization. An audit programme must be flexible or should continuously reviewed to keep it upto date.

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Some areas of study are also given which are as following:

1. Important Matter to be Considered while Formulating an Audit Programme.

2. Circumstances where Audit Programme would have to be Suitability Altered.

3. Matters to be Considered in Developing the Overall Audit Plan.

4. Knowledge about the Clients Business.

5. Designing an Audit Strategy.

6. Reliance on Work Done by Internal Auditors.

7. Usefulness of Internal Audit to the Statutory Auditor.

8. Principle's Ultimate Responsibility.

9. Using the Work of an Expert.

10. Written Representations by Management.

11. Control of Quality for Audit Work

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