Question

1. Which of the following is not correct about an audit program?

a. It should be specifically written so that someone can follow the steps

b. It should be signed off as the auditor completes each step.

c. It is an important tool, uniquely written for different sections of the audit (Ex. revenues, expenses).

d. It should allow the first year auditor to be creative in doing extra tests and verification if merited.

Answer 1

Answer

OPTION B

Explanation:

• Audit program refers to the plan and directions that the auditor (and his team) follows while conducting the audit. It contains the steps of the audit plan.
• It is a very important tool that shows different sections of the audit.
• Audit program should be written (and not oral).
• For the first auditor, the audit program ca be more elaborate and detailed as necessary because the auditor in new to the entity and it makes time to understand the internal controls of the entity.
• Audit program is internal documentation for the auditor and it need not be signed after each step.
• Clearly, option b is correct and other options are incorrect.

In case of any doubt or clarification, you're welcome to come back via comments.