Page 45 - CA Inter Audit PARAM

CA Ravi Taori
accounts, correlation of invoices with e-way bills on sample basis etc.

During verification, he notices that many e-way bills have been cancelled by the company within 24
hours of their generation in month of March. There is no specific instruction in audit programme in this
regard. He keeps mum. Is attitude of Rohit proper?
OR
M/s TP & Co., a firm of Chartered Accountants, has been conducting audit of KSR Ltd. since last 4 years.
KSR Ltd. has diversified their business into newer areas during the last year. The senior member of the
audit team handed over the standard audit programme of earlier years to the audit assistants and
instructed them to follow the same. The assistants are conducting the audit accordingly. Whether the
attitude of the audit assistants is justified? Guide them.
Answer The auditor, however, has to place appropriate weight on each piece of evidence and accordingly should
prescribe the priority of verification. It may be dangerous for the auditor to ignore any evidence that is
available.

Disadvantages of Audit Programme:
Inefficient assistants may take shelter behind the programme i.e., defend deficiencies in their work on the
ground that no instruction in the matter is contained therein.
The assistant engaged in the job should be encouraged to keep an open mind beyond the programme
given to him. He should be instructed to note and report significant matters coming to his notice, to his
seniors or the partners/proprietor of the firm engaged for doing the audit.
All these disadvantages 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.
Hence Attitude of Rohit is not proper. Reasons for cancellation of many e-way bills in month of March
need to be looked into. Matter should be informed to engagement partner.

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