1. Chapter 4 : Audit Program and Audit Notes T.Y. B com (Honours) Academic Year : 2009-10 Trimester : V

2. Audit Planning Points to be considered while planning an Audit : a) Reason b) Basis of plans (business of client) c) Coverage d) Revision e) Overall plan and Programme f) Benefits of adequate planning g) Factors affecting the audit h) Knowledge of clients business i) Previous years matters j) Discussions with client

3. Audit Planning Points to be considered while planning an Audit : k) Overall audit plan -terms of engagement -nature and timing of reports -statutory requirements -accounting policies adopted -effect of change in policies or auditing policies -identification of significant audit areas -setting materiality levels for audit -possibility of material error or fraud -degree of reliance to be placed on systems -possible rotation of audit areas

4. Audit Planning Points to be considered while planning an Audit : k) Overall audit plan -nature and extent of audit evidence -work of internal auditors -involvement of other auditors -involvement of experts -allocation of work in case of joint auditors -establishing and coordinating staffing requirements

5. Meaning of Audit Program …..”a detailed plan of the audit work to be performed, specifying the procedures to be followed in verification of each item in the financial statements, and giving the estimated time period.” It can also be called the outline or time table of how the audit work is to be conducted by the audit staff.

6. Contents of an Audit Program 1. Client name and accounting year 2. Audit Procedures - - evaluation of internal control -ascertaining arithmetical accuracy -vouching -verification & valuation of A & L -Scrutiny of ledgers -Analytical review and overall check -checking and grouping, disclosure and presentation -preparation & submission of report 3. Distribution of audit Work 4. Time Table