Beruflich Dokumente
Kultur Dokumente
Audit Plan
Contains of audit plan
The audit plan should cover the following mainly:
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c)
d)
Audit Programme.
Professor Meigs defines an Audit Programme as: "An audit program is a detailed plan of the
auditing work to be performed, specifying the procedures to be followed in verification of each
item in the financial statements and giving the estimated time required."
It ensures that all necessary work has been done and nothing has been omitted.
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The auditor is in a position to know about the progress of the work done by his
assistants.
A uniformity of the. Work can be attained as the same programme will be followed at
subsequent audits.
Work of the audit can be divided amongst the different juniors who will be
responsible for their work. In case a clerk goes on leave, his work can be resumed by
another clerk who is in a position to know what work has already been done.
It simplifies the allocation of work to various grades of articled and audit clerks.
In case of a change of negligence against the auditor for not having done some work,
the auditor can defend himself that the .work had been done by him or his assistant
who had duly signed the audit programme.
It is a kind of guidance to the audit clerk for the work he has to perform. Thus it is a
kind of assurance to the auditor that the junior will not overlook essential points while
checking the accounts.
In case any fraud or error hasTemained undetected, the responsibility for negligence
can be fixed on the clerk who had performed that work as his initials are put on the
audit programme.
It facilitate the final review before the report is signed.
For a new clerk the audit programme is a guide to his duty.
It is a useful basis for planning the programme for the subsequent year.
Audit Note-Book
An Audit Note-Book is a book which is maintained by the audit clerk During the course of audit,
the clerk comes across several difficulties or new points which he has to discuss with his senior
or the auditor He makes several inquiries which, he thinks, have not been satisfactorilv
answered. Lest he might forget these points, he noted down these in a book which is called by
different names such as Audit Note Book or Audit Memoranda. Such a book is a written record
of queries made, replies received thereto, correspondence entered into, etc. This book may be of
great help to the auditor preparing his Audit Report from such a record. A separate Audit Note
Book is maintained for each concern.
Working Papers
Working Papers are those papers which contain essential facts about accounts so that the auditor
may not have again to go over the accounts of his client in case he wants to refer to them later on
during the course of his audit,
Audit Files
The working papers are filed for future reference. Certain matters may be of permanent
importance and certain other matters may relate to a single period of audit. Matters of permanent
interest are filed in permanent file. A permanent file, for instance may include information
concerning organizational form like memorandum of association / articles of association in case
of company client, partnership deeds in case of firm client, important minutes of meetings,
review points of internal control system, accounting policies, audit and accounts reports of every
preceding year. In current file matters concerning the audit of current (or single period of year)
are filed. For instance, the current file may include matters documented in regard to acceptance
of reappointment, audit programme of the year, important extracts of audit notes concerning
checking of transactions, balances, events, matters arising from communicating with or
discussing with experts, third parties, client's staff, representations of management on accounting
matters, copy of financial statement and audit report of the relevant period under file.