What are the advantages and disadvantages of audit program?
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Audit program has following advantages:
1. Audit Program Saves Time And Labor
All the directions which are to be given to assistant are clearly stated in the audit program which helps to complete the task in time. Audit program also helps to conduct the audit of the business in coming years which saves time and labor.
2. Audit Program Increases Efficiency
All the responsibilities of auditor are divided among the number of staffs considering their skill and intelligence which helps to complete the work of audit properly. Similarly, the works are divided among the assistant staffs on the basis of their caliber which helps to increase efficiency.
3. Audit Program Helps To Control
An auditor can compare the work performed by the assistants on the basis of audit program which helps to control their work if there are any deficiencies.
4. Audit Program Helps To Maintain Uniformity
Works are divided among the assistant staffs; so there is no any chance of leaving non audited statements. If the work of audit is performed on the basis of audit program every year, uniformity can be maintained in the work of audit which helps to compare the report of various years.
5. Audit Program Helps To Make Responsible
Work of assistant is clearly defined in the audit program and assistant puts signature in the completed work. So, if any work is left out, assistant can be made liable for such work.
6. Audit Program Helps To Maintain Continuity
Audit program clearly shows the completed task and procedures of doing work. So, if any staff leaves the job or remains absent, new staff can easily continue the job of audit.
7. Audit Program Helps To Present As Proof
Auditor can present audit program as proof if he/she has been accused of misfeasance or negligence and can get clearance from such accusation. Audit program can be presented in the court also.
disadvantages of audit program are as follows:
1. Audit Program Harasses To Staffs
All the staffs should perform task within the limitation given in audit program. So, staffs can not use their knowledge and caliber which harasses to them.
2. Possibility OF Being Unsuitable
Nature and size of business differs. So, the program which is prepared at the beginning of the year remains unsuitable. Different organizations may have their own problems. So, similar type of program may not be applicable to all.
3. Audit Program Increases The Chance Of Fraud
Staffs of the client get information about the audit program in advance which increases the chance of committing frauds. Similarly, it harasses the audit staffs so they perform the work of audit carelessly which also increases the chance of committing frauds.
4. Audit Program Is Unsuitable To Small Concern
Small concern has less transactions and work of audit can be completed in short period of time. So, audit program is not essential to audit such concern.
5. Exclusion Of Problems Of New Technology
New techniques and technologies are used in the work of accounting. Such technology creates the problem in the work of audit but such problems and remedial measures are not included in the audit program.
1. Audit Program Saves Time And Labor
All the directions which are to be given to assistant are clearly stated in the audit program which helps to complete the task in time. Audit program also helps to conduct the audit of the business in coming years which saves time and labor.
2. Audit Program Increases Efficiency
All the responsibilities of auditor are divided among the number of staffs considering their skill and intelligence which helps to complete the work of audit properly. Similarly, the works are divided among the assistant staffs on the basis of their caliber which helps to increase efficiency.
3. Audit Program Helps To Control
An auditor can compare the work performed by the assistants on the basis of audit program which helps to control their work if there are any deficiencies.
4. Audit Program Helps To Maintain Uniformity
Works are divided among the assistant staffs; so there is no any chance of leaving non audited statements. If the work of audit is performed on the basis of audit program every year, uniformity can be maintained in the work of audit which helps to compare the report of various years.
5. Audit Program Helps To Make Responsible
Work of assistant is clearly defined in the audit program and assistant puts signature in the completed work. So, if any work is left out, assistant can be made liable for such work.
6. Audit Program Helps To Maintain Continuity
Audit program clearly shows the completed task and procedures of doing work. So, if any staff leaves the job or remains absent, new staff can easily continue the job of audit.
7. Audit Program Helps To Present As Proof
Auditor can present audit program as proof if he/she has been accused of misfeasance or negligence and can get clearance from such accusation. Audit program can be presented in the court also.
disadvantages of audit program are as follows:
1. Audit Program Harasses To Staffs
All the staffs should perform task within the limitation given in audit program. So, staffs can not use their knowledge and caliber which harasses to them.
2. Possibility OF Being Unsuitable
Nature and size of business differs. So, the program which is prepared at the beginning of the year remains unsuitable. Different organizations may have their own problems. So, similar type of program may not be applicable to all.
3. Audit Program Increases The Chance Of Fraud
Staffs of the client get information about the audit program in advance which increases the chance of committing frauds. Similarly, it harasses the audit staffs so they perform the work of audit carelessly which also increases the chance of committing frauds.
4. Audit Program Is Unsuitable To Small Concern
Small concern has less transactions and work of audit can be completed in short period of time. So, audit program is not essential to audit such concern.
5. Exclusion Of Problems Of New Technology
New techniques and technologies are used in the work of accounting. Such technology creates the problem in the work of audit but such problems and remedial measures are not included in the audit program.
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