An audit program is a set of directions that the auditor and its team members need to follow for the proper execution of the audit. It guides the audit personnel in the work of audit to be done.
Disadvantages of Audit Program –
Even though the audit program has a number of advantages, it is not free from limitations. Some of the major disadvantages of audit program are as follows:
(1) Rigidity
There is no set standard audit program that can be applied in the case of every entity. A rigid program cannot be laid down for different types of business because each business has got its own problems.
(2) Audit Program Harasses to Staffs
A program reduces the initiatives of efficient and competent staff. All the staff should perform a task within the limitation given in an audit program. Thus, staff members cannot make changes in the audit plan and cannot make suggestions to it. So, staff can not use their knowledge and caliber which harasses them.
(3) Possibility of being Unsuitable
The nature and size of the business differ. So, the program which is prepared at the beginning of the year remains unsuitable. Inefficient and careless auditors may sometimes try to conceal their weaknesses and defects on the basis of the audit program. Different organizations may have their own problems. So, a similar type of program may not be applicable to all.
(4) Audit Program Increases the Chance of Fraud
If work is carried out according to predetermined plan fraud may be facilitated. Staffs of the client get information about the audit program in advance which increases the chance of committing fraud. The periods and the records, which are required to be tested, may not be varied systematically. Similarly, it harasses the audit staffs so they perform the work of audit carelessly which also increases the chance of committing fraud.
(4) Audit Program is Unsuitable to Small Concern
It has been testified that the audit program is not suitable for small audits. Small concern has fewer transactions and work of audit can be completed in a short period of time. Audit program is not much use in the case of a small audit where the books to be audited are very few. So, an 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. The program becomes mechanical when it ignores other aspects like internal control. 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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