Fixed Audit Program
Generally, the auditor prepares audit programs on the suggestions and recommendations of assistant staffs but such program can not be changed during the course of audit which is known as a fixed audit program. This is an audit program that can not be changed during the course of the audit. Audit staff has to follow the instructions mentioned in the Audit Program as laid down in it without any change. This audit program includes all probable audit actions; although all of them may not be appropriate in a situation. The difficulty with this kind of program is that it is very rigid.
It may be defined as a preparation based on planned judgment and deep discussions and contains broad, consistent and all feasible audit instruction and procedures irrespective of their applicability to the audit engagement. Such program, due to the pace of time or change in the situation and size of the client needs to change even though it can not be changed. A fixed audit Program can be used in all organizations. It is a set of standardized instructions; which are to be followed at the same time as conducting the audit. This Program is very rigid in nature and any modification or change is Program is not easily possible.
Standardized audit program are made available for the following areas of audit work.
Liabilities
- Share capital
- Reserves
- Borrowing-debentures, loans, etc
- Creditors
Assets
- Bank and cash transactions
- Debtors
- Investments
- Fixed assets
- Inter-company accounts
General
- Analytical review
- Minutes of directors
- Minute of AGM
- Taxation
- Balance sheet.
