Page 43 - CA Inter Audit PARAM

CA Ravi Taori
QNO-- Audit Programme For Purchases New Course – (M24R)
C2OC.095 Bhaskar CNO – Unique

The assistant of CA K is assigned responsibility of drafting “audit programme” relating to purchases
appearing in financial statements of “Broad Industries”, a partnership firm. The said firm is a GST

registered tax payer and is engaged in manufacturing of packing boxes from a special type of paper taxable
under GST. Help him by drafting a sample audit programme for purchases.
Answer Sample audit programme pertaining to purchases
Name of Concern: Broad Industries
Financial Year: 20XX-XX
Prepared by: Name of person with date
Reviewed by: Name of person with date
Approved by: Name of person with date

Sr. No. Nature of Procedure Extent of Basis of Done by
Check Sample
a) Vouch few purchase invoices of
paper from purchase records of
concern.
b) Trace these invoices into
account books of concern
c) Verify few purchase invoices of
paper on GST portal.
d) Trace few purchase invoices of
paper in stock records to ensure
that these have been added to
stocks of raw material.

Advantages/Disadvantages of Audit Old Course-
QNO Programme (P16M/M17R/M18R/N18M/N18E/N19R/N21R/M19R/M2
C2OC.100 Bhaskar CNO C2OC.100 2M/N22M/M23M/M23R)
New Course—(M24M/S24M/J25M)
All the disadvantages of audit program may be eliminated by imaginative supervision of the work
carried on by the assistants. Explain stating the advantages and Disadvantages of an audit program.
OR
“All the disadvantages of audit program may be eliminated by imaginative supervision of the work
carried on by the assistants, the auditor must have a receptive attitude as regards the assistants; the
assistants should be encouraged to observe matters objectively and bring significant matters to the
notice of supervisor/principal.” Explain stating the advantages and disadvantages of an audit program.
OR
Surya and Chand Ltd is a manufacturing company engaged in the production of miscellaneous electrical
goods. Trilithon and Co. has been appointed as the auditors to carry out its audit. Auditor thinks that
Planning an audit would involve establishing the overall audit strategy for the engagement and
developing an audit plan. Also, Adequate planning benefits the audit of financial statements in several
ways. Analyse and Advise explaining the benefits of adequate planning.
OR
Planning an audit involves establishing the overall audit strategy for the engagement and developing
an audit plan. Adequate planning benefits the audit of financial statements in several ways. Discuss
OR
Explain the benefits of planning in the audit of financial statements.
OR
Sanjana is of the view that there exist some disadvantages in the use of audit programmes but most of
these can be removed by following some concrete steps. Do you agree with her perspective? Comment
Answer ➢ Advantages & Disadvantages of Audit Programme
Advantages

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