Developing the Audit Programme

The auditor should prepare a written audit programme setting forth the procedures that are needed to
implement the audit plan. The programme may also contain the audit objectives for each area and
should have sufficient details to serve as a set of instructions to the assistants involved in the audit and
as a means to control the proper execution of the work.
In preparing the audit programme, the auditor, having an understanding of the accounting system and
related internal controls, may wish to rely on certain internal controls in determining the nature, timing
and extent of required auditing procedures. The auditor may conclude that relying on certain internal
controls is an effective and efficient way to conduct his audit. However, the auditor may decide not to
rely on internal controls when there are other more efficient ways of obtaining sufficient appropriate
audit evidence. The auditor should also consider the timing of the procedures, the coordination of any
assistance expected from the client, the availability of assistants, and the involvement of other auditors
or experts.
The auditor normally has flexibility in deciding when to perform audit procedures. However, in some
cases, the auditor may have no discretion as to timing, for example, when observing the taking of
inventories by client personnel or verifying the securities and cash balances at the year-end.
The audit planning ideally commences at the conclusion of the previous year’s audit, and along with the
related programme, it should be reconsidered for modification as the audit progresses. Such
consideration is based on the auditor’s review of the internal control, his preliminary evaluation thereof,
and the results of his compliance and substantive procedures. Developing the Audit Programme