What is an Audit Program?

An audit program is a checklist of the audit procedures that must be followed by an auditor in order to complete an audit. An auditor signs off on each checklist item as it is completed, and then inserts the audit program into the audit working papers as evidence that audit steps were completed. The contents of an audit program will vary by the scope and nature of the audit, as well as by industry. There are a number of standard audit guides available that are tailored to individual industries. Audit programs are used by both internal auditors and external auditors.

Advantages of an Audit Program

There are several advantages to preparing and following an audit program. First, it is a good way to ensure that the audit work done is restricted to certain areas, which reduces the cost of the audit. Second, basing all work on a well-defined audit program increases the level of work efficiency, which can also reduce costs. Third, having an audit program makes it easier to discuss audit activities with the client, who should have a full understanding of the work that will be performed. Finally, an audit program puts clear boundaries around the work that will be performed, so it is an effective way to control the scope of an audit.