Audit Planning: Audit Programme, Working Papers, Documentation and Audit Evidence (Basics) Questions

Question 1

Define audit planning.

Accepted Answer

**Audit planning** is deciding in advance the nature, timing and extent of audit work to be performed.

Question 2

What is an audit programme?

Accepted Answer

An **audit programme** is a written list of detailed audit procedures to be performed.

Question 3

Define audit evidence.

Accepted Answer

**Audit evidence** is information used by the auditor to reach conclusions and support the audit opinion.

Question 4

What is a working paper?

Accepted Answer

A **working paper** is audit documentation recording procedures performed, evidence obtained and conclusions reached.

Question 5

What does sufficiency of evidence mean?

Accepted Answer

**Sufficiency** refers to the **quantity** of audit evidence.

Question 6

What does appropriateness of evidence mean?

Accepted Answer

**Appropriateness** refers to the **quality** of evidence (relevance and reliability).

Question 7

Explain objectives/importance of audit planning (any five).

Accepted Answer

Objectives of **audit planning** (any five):
- Proper **time and staff allocation**.
- Identify **risk areas** and focus on them.
- Decide appropriate **audit procedures**.
- Better **coordination and supervision**.
- Reduce **audit risk** and improve audit quality.

Thus, planning ensures efficient and effective audit.

Question 8

Differentiate between audit plan and audit programme.

Accepted Answer

**Audit plan** is the overall strategy and approach (timing, resources, risk focus). **Audit programme** is the detailed step-by-step list of procedures to be performed.

| Basis | **Plan** | **Programme** |
|---|---|---|
| Level | broad | detailed |
| Focus | strategy | procedures |

So plan guides the audit; programme executes it.

Question 9

Explain audit evidence and state its qualities.

Accepted Answer

**Audit evidence** is the information used to support audit conclusions and opinion.

Quality depends on two aspects:
- **Sufficiency**: quantity of evidence.
- **Appropriateness**: quality (relevance and reliability).

Higher risk requires more and better evidence.

Question 10

List any six audit procedures used to obtain evidence.

Accepted Answer

Audit procedures (any six):
- **Inspection**
- **Observation**
- **Inquiry**
- **Confirmation**
- **Recalculation**
- **Reperformance**
- **Analytical procedures**

These help the auditor gather sufficient and appropriate evidence.

Question 11

Explain working papers and state any three advantages.

Accepted Answer

**Working papers** are the auditor’s documentation of procedures performed, evidence obtained and conclusions reached.

Advantages (any three):
- Provide proof of work done and basis for **audit opinion**.
- Help **supervision and review**.
- Assist in **future audits** and planning.

They also support the auditor in case of disputes.

Question 12

Explain sufficiency and appropriateness of audit evidence (brief).

Accepted Answer

**Sufficiency** refers to the **quantity** of evidence collected. **Appropriateness** refers to the **quality** of evidence, i.e., **relevance and reliability**.

Even a large quantity of poor-quality evidence is not useful; the auditor needs evidence that is both sufficient and appropriate.

Question 13

Explain audit planning and its importance. Add a simple flowchart.

Accepted Answer

**Audit planning** means deciding in advance **what**, **when**, **who**, and **how** the audit will be performed. It acts as the **roadmap** for the audit.

### **Objectives/importance**
- Proper **time and staff allocation**
- Focus on **high-risk areas**
- Selection of suitable **audit procedures**
- Better **coordination and supervision**
- Reduction of **audit risk** and improvement in audit quality

```text
Understand client → Risk & materiality → Plan procedures → Prepare programme → Perform & document → Report
```

Thus, planning makes audit efficient and effective.

Question 14

Differentiate between audit plan and audit programme. Explain features of audit programme with a flow/table.

Accepted Answer

### **Audit plan vs Audit programme**
| Basis | **Audit plan** | **Audit programme** |
|---|---|---|
| Nature | overall strategy | detailed step-by-step procedures |
| Level | broad | specific |
| Covers | timing, resources, risk focus | checking/vouching/verification steps |

### **Audit programme: key points**
- ensures **completeness** and **uniformity**
- assigns **responsibility** (who does what)
- acts as **control tool** for supervisor

```text
Plan (strategy) → Programme (procedures) → Evidence → Documentation → Opinion
```

So, plan is the approach; programme is the detailed action list.

Question 15

Explain audit evidence. Discuss sufficient vs appropriate evidence and add a reliability table.

Accepted Answer

### **Audit evidence**
**Audit evidence** is the information used to form the audit opinion.

### **Sufficient and appropriate**
- **Sufficiency** = **quantity** of evidence
- **Appropriateness** = **quality** (relevance + reliability)

### Reliability (small table)
| Evidence source | Reliability (general) |
|---|---|
| **External confirmation** | High |
| **Internal documents** | Medium |
| **Oral statements** | Low |

### Common procedures to obtain evidence
**Inspection**, **observation**, **inquiry**, **confirmation**, **recalculation**, **reperformance**, **analytical procedures**.

Thus, good audit opinion requires evidence that is both sufficient in quantity and appropriate in quality.

Audit Planning: Audit Programme, Working Papers, Documentation and Audit Evidence (Basics)

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