Disadvantages of Audit Programme | Measures to overcome limitations

Audit Programme - Disadvantages and Remedy

Image: Audit Programme – Disadvantages and Remedy

Disadvantages of Audit Programme

Audit programme has certain disadvantages and limitations, which should be taken care of.

1. The auditor’s task becomes mechanical and as a result initiative and efficiency are adversely affected.

2. There is always a tendency to speed up the work so as to complete it within the required time schedule.

3. A rigid programme cannot be laid down for different types of business because each business has got its own problems.

4. Audit programme is not much useful in the case of a small audit where the books to be audited are very few.

5. The audit programme may not be completed because certain items may be left from being checked.

6. The periods and the records, which are required to be tested, may not be varied systematically.

7. Even a detailed audit programme cannot consider each and every minute work involved during the course of audit of a business.

8. Inefficient and careless auditors may some time try to conceal their weaknesses and defects on the basis of the audit programme.

9. The audit staff tends to go ahead with the work as per the audit programme. Therefore, there is no scope for adopting new techniques or additional procedures, which are necessary according to the circumstances, which arise during the course of audit.

Precautionary Measures to Overcome the Limitations of Audit Programme

1. The audit programme should be altered as per the internal control system to be reviewed from time to time and from firm to firm.

2. The auditor should also revise it when his client has adopted a new line of action.

3. The assistants should be consulted while preparing the audit programme.

4. A rigid and stereotyped programme should be avoided.

5. Audit assistants while they actually using the audit programme should really feel that they have actually some discretion in practice.

Hence, to guard against the disadvantages, it is usually suggested that an audit programme should be divided into two parts, viz.,

  1. Work common to all types of audit, and
  2. Work relating to a particular audit.

This will, therefore, leave some scope for modification to be made in the audit programme whenever necessary.

Leave a Reply

This site uses Akismet to reduce spam. .




Recent Posts


Related pages


describe the difference between convenience sampling and quota samplingdefinition of capital expenditure budgetdefinition of profitability ratiosirr in accountingobservational market researchspecial damages vs general damagespersistent dumping definitionadvantages of traditional costing systemadvantages and disadvantages of decentralizationfeatures of a capitalist economywhat is high labour turnoversecuritization bondsmeaning of tqmmeaning of in arrearsdematerialisation meaning and conceptservices of merchant bankerscentralized vs decentralized organizationadvantages and disadvantages of centralized and decentralized purchasingcaveat emptor definition lawmeaning of drawer and draweebill receivable meaningnationalization of commercial banksexample of insurable interestrbi current monetary policydu pont chartobjectives of deficit financingpromisor meaningadvantages and disadvantages of mbocharacteristics of a sole trader businessadvantages of cash flow statementsalesmanship pdffranchisor advantagespayback ratioemployee morale questionnaire sampleinter firm meaningdebt securitization meaningexplain the term decentralizationautocratic definediagonal mergercoop dividendunderwriter meansseven steps of the sales processdematerialisation meaning and conceptfutures advantages and disadvantagescongeneric mergervoid vs voidableoperating lease and finance leasesinking fund depreciation method with examplespartly convertible debenturespartnership final accountssecondary functions of commercial banksmonopoly firms in indiadisadvantage of random samplingadvantages and disadvantages of magazinespayables turnoverbenefits of a flexible budgetadvantages of specialty storessocialist economy disadvantagesdrawer bank definitionprivity definitionautocratic leadership disadvantagesdefinition of autocraticdisadvantage of autocratic leadershipcalls in arrears in balance sheetnationalized banks in indiarecent horizontal mergerslimitation of activity based costingsebi definitionmagazine advantages and disadvantageshire purchase vs lease purchasecalculating days sales outstandinghow to calculate a payback periodanticipatory repudiation discharges a contractlimitations of ratio analysis in accountinguses of petty cash bookalphabetical filingamalgamation vs mergerbailor meaningtypes of speculatorstypes of busnessdrawbacks of a business plan