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

The auditor of Konkan Marine Ltd prepares a detailed audit programme for the year. Which of the following is a correct statement about the audit programme?

An audit programme is a set of instructions to audit assistants listing the procedures to be performed, and it can be modified as circumstances change during the audit. It is prepared by the auditor, not management, and it does not replace working papers.

  1. AIt is a set of instructions to assistants that lists the audit procedures to be performed, and it should be modified as circumstances change during the auditCorrect
  2. BIt is a document prepared by management for the auditor to follow, which cannot be changed once approved
  3. CIt replaces the need for audit working papers
  4. DIt contains only the final conclusions reached on each area audited

Explanation

An audit programme is the auditor's detailed plan of procedures for each area, serving as instructions to assistants and a means of controlling and recording work. It is flexible and is amended as needed. It is prepared by the auditor, not management, and does not replace working papers or record only conclusions.

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