Auditing and Ethics · Audit Strategy, Audit Planning and Audit Programme

Audit Programme for CA Intermediate Auditing and Ethics

Updated 4 October 2026 · Fact-checked

An audit programme is a detailed set of written instructions listing the audit procedures to be performed, their nature, timing and extent, and who will perform them. You solve questions by defining it, linking it to the audit plan, then giving advantages, disadvantages, preparation and modification with examples.

Understand Audit Programme

An audit programme is the auditor's detailed to-do list for an audit. It sets out the specific procedures to be carried out on each area, such as cash, inventory or payables. It also records who will do each procedure, when, and how much work is needed. Each step is usually signed or initialled by the person who completes it.

The programme comes out of the overall audit strategy and the audit plan. The strategy sets the scope, timing and direction of the audit. The plan is the more detailed approach, covering risk assessment procedures, further audit procedures and other procedures. The programme turns this into day-to-day instructions for the team. Think of it as strategy first, plan next, programme last.

A programme is not fixed once written. If you find new risks, a weak control or an unusual transaction, you change the procedures. You must record the change and the reason for it. Planning is a continuous process through the audit, not a one-time activity.

The programme sits beside two other documents. The audit memorandum is a note of the important matters that guide the audit, which you may prepare when the audit is large or complex. Working papers are the record of the work actually done, the evidence obtained and the conclusions reached. The programme says what to do, and working papers prove what was done.

There is no single standard programme. A programme for a small trading firm will be short. One for a large manufacturing company will be long and divided by area. The design depends on the client, the risks and the team.

Key rules to remember

Planning hierarchy: Overall audit strategy → Audit plan → Audit programme; Strategy is broad, plan is more detailed, programme is the step-by-step procedures. Use this to answer difference questions.
What a programme states: Procedures + Nature + Timing + Extent + Responsible person + Sign-off; Use this as a checklist when asked what an audit programme contains.
Programme versus working papers: Programme = what is to be done; Working papers = what was done and found; A programme is forward-looking. Working papers are the record of work done.
Modification rule: New information or changed risk → revise procedures → document the change and reason; Planning continues throughout the audit. Changes must be recorded.

How to solve Audit Programme questions

Most questions ask you to define, list pros and cons, explain preparation or modification, or compare with related terms. Use one structure for all of them.

1Read the question and identify the ask: definition, advantages, disadvantages, preparation, modification or difference.
2Start with a one-line definition of the audit programme: written procedures with nature, timing, extent and responsibility.
3Link it to the audit strategy and audit plan so the examiner sees you know where it fits.
4Give your points as short numbered or bulleted lines, each with a brief reason, not just a heading.
5For a scenario question, tie each point to the facts given, such as a new risk, a change in client or a team change.
6Mention documentation: the programme is signed off as work is done and changes are recorded.
7Finish with a one-line conclusion, such as the programme is a flexible guide and not a rigid rule.

Quickest way: Define, place, list, apply

When to use it: Use this when you have about 5 to 7 minutes for a 5 to 6 mark written answer, or about 1 minute for an MCQ.

Write the definition in one line, then the position: strategy, then plan, then programme.
List 4 to 5 points for what was asked, each in one line with a short reason.
For scenarios, add one line linking each point to the facts.
MCQ tip: if an option says a programme is fixed and cannot be changed, eliminate it. Programmes are modified.
MCQ tip: if an option says the programme replaces the auditor's judgment, eliminate it. It guides and does not replace judgment.
MCQ tip: if the question asks what records the work actually done, choose working papers, not the programme.

Common mistakes in Audit Programme

Treating audit plan and audit programme as the same thing.
Both are planning documents and the words sound alike.
Fix: Remember the order: strategy, plan, programme. The plan is the approach. The programme is the detailed procedures and who does them.
Saying the programme cannot be changed once approved.
Students think a written document is fixed.
Fix: State that the programme is revised when risks or circumstances change, and that the change and reason are documented.
Listing only advantages and skipping disadvantages, or the reverse.
Students memorise one list and forget the other.
Fix: Keep both lists together. Advantages: work is planned, responsibility is fixed, progress is tracked, new staff are guided, and it forms a record. Disadvantages: it can become mechanical, may not fit every client, can discourage initiative and may be rigid if not updated.
Confusing the programme with working papers.
Both are documents kept in the audit file.
Fix: Programme is the instruction set before and during the work. Working papers record evidence and conclusions after the work is done.
Writing the audit memorandum as a legal contract or the engagement letter.
The word memorandum suggests a formal agreement.
Fix: Describe the audit memorandum as a summary of important matters affecting the audit, kept for guidance and future reference. The engagement letter is a separate document agreeing terms with the client.
Giving generic points with no link to the case facts.
Students write memorised answers without reading the scenario.
Fix: Underline the facts in the question and say how each affects the programme, for example higher risk leads to more extensive procedures.

Worked examples

Example 1

Define an audit programme. State its advantages and disadvantages. (6 marks)

Show the solution

Definition: an audit programme is a set of detailed written instructions listing the audit procedures to be performed, their nature, timing and extent, and the persons responsible. It is drawn from the audit strategy and the audit plan.
Advantage 1: it plans the work in advance, so no important area is missed.
Advantage 2: it fixes responsibility, because each step is assigned and signed off by the person who performs it.
Advantage 3: it lets the partner or manager track progress and review quality.
Advantage 4: it guides junior or new team members on what to do.
Advantage 5: the signed programme is a record that procedures were performed.
Disadvantage 1: it can make the work mechanical, so staff may tick steps without thinking.
Disadvantage 2: a standard programme may not fit a particular client and can miss specific risks.
Disadvantage 3: if it is treated as rigid, it can discourage initiative and delay response to new risks.
Conclusion: the programme is a guide. It must be tailored to the client and updated as the audit progresses.

Answer: An audit programme is a written list of audit procedures with nature, timing, extent and responsibility. Advantages: planned coverage, fixed responsibility, progress tracking, guidance for juniors and a record of work. Disadvantages: mechanical working, poor fit with a specific client, and rigidity if not updated.

Example 2

During the audit of Ananya Traders Ltd., the audit assistant finds that the company changed its inventory valuation method and several large year-end transactions have no supporting documents. The audit programme made at the start did not include extra procedures for these. What should the auditor do, and how does this relate to the audit programme and working papers? (5 marks)

Show the solution

Recognise that the new facts change the assessed risk of material misstatement, especially for inventory and year-end transactions.
The auditor should revise the audit plan and the audit programme. Planning is continuous and not a one-time activity.
Add procedures with greater extent, for example attend or review inventory counting, test the new valuation method against the applicable accounting framework, and examine the large year-end transactions in more detail.
Assign the new steps to suitable team members and set the timing. Higher risk may need a more experienced person.
Document the change in the programme with the reason for it, and have each new step signed off when done.
Record in the working papers the procedures performed, the evidence obtained and the conclusions reached. If the matter is important, note it in the audit memorandum for guidance.

Answer: The auditor should modify the audit programme by adding more extensive procedures for inventory valuation and the unsupported year-end transactions, assign and time them, and document the change and its reason. The work done and conclusions are then recorded in the working papers, and the important matter may be noted in the audit memorandum.

Exam tips

For difference questions, use a short two-column style in lines: basis, audit plan, audit programme. Cover purpose, level of detail and who it guides.
In scenario questions, always say the programme is modified and documented when risks change. This earns marks quickly.
Write both advantages and disadvantages when the question says merits and demerits, even if you are short on time.
For MCQs, watch for absolute words such as always, fixed or cannot. They usually signal a wrong option.
If you meet audit memorandum, define it in one line as a summary of important matters guiding the audit, and do not confuse it with the engagement letter.

Practice questions from Audit Strategy, Audit Planning and Audit Programme

Audit Programme in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Audit Programme: frequently asked questions

What is the difference between audit plan and audit programme?

The audit plan is the auditor's detailed approach to the audit, built on the overall strategy. The audit programme is the more detailed list of specific procedures, with nature, timing, extent and responsible persons. The plan says how the audit will be approached, and the programme says exactly what steps to perform.

What is an audit memorandum?

An audit memorandum is a note of important matters that guide the audit, which the auditor may prepare especially for large or complex engagements. It helps in planning and later reference. It is different from the engagement letter and from working papers.

Can an audit programme be changed during the audit?

Yes. If you find new risks, weak controls or unusual transactions, you should revise the procedures. You must document the change and the reason for it.

Who prepares and signs the audit programme?

The engagement partner or a senior member usually prepares it with input from the team. Each team member who performs a step signs or initials it. The partner or manager reviews it to confirm that the work is complete.