Audit plan vs audit program & difference with comparison table

We explain the difference between audit plan and audit program with table. Although auditors can be classified as internal or external auditors, they both require the same information. While conducting an audit, the auditor should have evidence to support his opinion. Acquiring a handful of evidence is the beginning of a successful audit. The Auditor usually writes an outline of the work, along with the techniques to be used. audit plan vs audit program

They evaluate support materials and should be prepared for all kinds of fraud risks. They also have the right to receive and verify information obtained from records, practices, and documentation to develop an overall audit plan and program.

What is the Audit Plan?

An audit plan is a set of guidelines when conducting an audit. It is an important foundation that should not be overlooked.

From the word itself, it is simply defined as a plan to be carried out in an organization that includes the strategy and techniques that will be followed in conducting an Audit. This part of an audit is critical. audit plan vs audit program

Determine all necessary factors, making sure to cover all critical areas and identify and address potential problems.

The work will be completed to perfection with the utmost honesty and precision. audit plan vs audit program

When designing a plan, an Auditor should consider these fundamentals below:

1. Introduction to the client – It is an essential procedure to know the client’s information, such as the nature of the business, its commitment to the community, and the meeting with the employees. audit plan vs audit program
2. Review of audit documentation – the most critical part of making your preparations is reviewing previous audits, whether of a predecessor auditor or an accounting firm. It is only applicable if the customer provides such information (which in most cases they do).
3. Recent developments – an auditor should be well informed of the latest developments, such as new companies or investments, products, or even mergers, as this could create a considerable discrepancy from the previous year.
4. Interim financial statements – It is mandatory to analyze incorrect accounts and those that need to be monitored.
5. Know non-auditor personnel – identification of professionals or services other than an audit. audit plan vs audit program
6. Personal – Participation and discussion are needed for a smooth transaction. Still, the procedures to be discussed are only limited to what is necessary at a designated level.
7. Calendar/schedule – Organization of customer and staff management. Checking of documents to be corrected or sent.
8. Assistance from other accounting entities – This should be determined whether or not a specialist should be in a particular procedure, be it an IT specialist or a tax professional.
9. Accounting Standards Pronouncements – is critical as it pertains to the hierarchy of communications from the finance department to standard boards and at all levels.
10. Appointment with the client – The client should be informed when an audit will begin. You also need to be well prepared for things like the hours when they can’t access bank safes or deposit boxes. It is to ensure maximum integrity during the procedure. audit plan vs audit program

What is the audit program?

An audit program acts as a template for the audit plan. It specifies how the audit will take place, who will complete it, and what steps are required to complete it.

It is like what happens with the plan once formulated, which comprises several developed steps that an auditor must follow. audit plan vs audit program

It has a variety of procedures, document verification, and evidence acquisition to assist the auditor with the information. It has a variety of procedures, document verification, and evidence acquisition to assist the auditor with the information.

The auditor plans to conduct the audit in an efficient and timely manner, so it is imperative to follow the planning procedures step by step. While it implies that the auditor must follow the plan, the audit program must also be flexible enough for changes that need review, while ensuring that all important areas are covered. audit plan vs audit program

Audit plan vs audit program

The difference between an audit plan and an audit program is that while conducting the audit, the auditor follows the guidelines called an audit plan, on the other hand, audit program means that the audit staff follows the steps listed in the audit program to collect audit evidence.

The audit plan is the first basic step of the audit, while the audit program is the second step of the audit for the examination of the evidence. audit plan vs audit program

An audit plan and program can have different definitions and roles; however, both are an accessory to a successful audit. An audit refers to a detailed, systematic, and independent examination of a process to ensure compliance.

Comparison table between audit plan and audit program

Comparison Audit Planning Audit Program Parameter

Main differences between the audit plan and the audit program

1. An audit plan is a design prepared by an auditor when conducting an audit. The Audit Program is the execution of the project itself, which has an extensive procedure on how it should be exhausted.
2. The audit plan always comes first, followed by the audit program. audit plan vs audit program
3. Both can be written by the same auditor; however, in the execution of the Audit Program, another accounting entity or expert may be required depending on the nature of the Audit.

Frequently Asked Questions (FAQ) about the audit plan and audit program

What are the types of audit programs?

An audit program (also called an audit plan) tells the auditor what procedure is required to be followed during an audit to ensure that the organization adheres to the rules and regulations as instructed. audit plan vs audit program

The different types of audit programs are:

1. Standardized Audit Program – This program helps industries create their own set of rules and regulations to comply with and the process of conducting internal audits.
2. Tailored audit program – These programs are created to focus on a specific area during an audit. In this program, importance is not given to the entire compliance framework, but only to specific areas such as legal documents, company procedures, etc. audit plan vs audit program
3. Compliance Audit – This program provides guidance on how to follow the compliance framework.

What is the audit checklist?

An audit checklist is a list of questions that the quality management system gives to complete during an audit. It also includes tasks that must be completed to complete an audit successfully. program

What is the audit planning process?

An audit planning process is a process of planning an audit for a company. This process helps to divide the audit into several steps to make it easier and more convenient for the auditor to audit the plan. audit plan vs audit program

What do you mean by cost auditing?

The cost audit can be defined as the audit to verify the cost accounts of a company to ensure that it adheres to the cost accounting plan established by the management. Cost accounting records such as cost reports, account statements, accounts, and techniques are usually checked.

After verification, the records are reviewed to make sure they follow the plans and procedures.

The cost audit is important because it helps uncover any cost accounting flaws or errors that could result in a loss. It also helps to uncover any fraudulent activity on the cost account.

Can a CA perform a cost audit?

A CA may conduct a cost audit for the sole purpose of obtaining information or analyzing the compliance framework. But by law, a cost accountant is the only person eligible to conduct a cost audit. A CA can also perform a cost audit under two conditions:

1. He or she is a practicing cost accountant.
2. He or she is an employee of a cost accountant.

In both conditions, it should not be CA in practice.

Final Thought  audit plan vs audit program

We all know that the main purpose of an audit is to identify the financial position of a particular company or entity. Therefore, an auditor or accounting firm must act independently to avoid any influence from a relationship within the client’s circle.

Both the Audit Plan and the Audit Program have their respective roles to play in a fraud prevention campaign.

It strengthens the processes of an organization and ensures that its protocols are followed. It also prevents fraud and other accounting irregularities from becoming apparent. It emphasizes the importance of why all documents, records, and other materials or evidence are free from doubt or suspicion. And you should only adhere to recording true and accurate information.