Explaination of terms

[Ulysses Kwaku Nubueke]

Kindly explain to me the following:
a) Annua audit plan
b) Audit Porgram
c) Programme of work
d) Assertions

[Acid]

Hi there,

Annual Audit plan = Converts the audit strategy into a more detailed plan.


Audit Programme - An official and independant examination of an organizations accounting records , operations and financial statements to ensure they give True and Fair view and are free from material misstatements.

Assertions - Representations made by management/executives.

About Programme of work - I am not sure . You should wait for the tutors answer.


Best regards

Assad

[Vanessa]

Audit planning is a detailed recording of each procedure and process required to perform an audit. Once the overall strategy has been determined, the auditor should prepare a detailed plan of the areas determined in the audit strategy. Once the audit strategy has been decided, the next stage is to decide how it is going to be carried out – an audit plan is necessary. The audit plan contains the nature, timing and extent of the procedures to be performed. The audit plan covers:
 allocation of work and duties to the assistants
 allocation of time and cost
 formation of various teams
 audit test
 data gathering techniques
 audit objectives
 types of audit evidence desired
The audit plan is developed in order to reduce audit risk to an acceptably low level.

Refer Study guide C5.6 for examples.

Annual audit plan refers to the audit plan for the year. It can be with respect to either internal audit or external audit.

Audit programme- This term is an alternative term to audit plan.

AssertionIf you pick up any financial statements, you will find that they contain a fair amount of information. Management conveys some information through each figure or sentence contained in the statements. This communication of information is an assertion. It may range from the figure of profit or loss to the individual line items or notes in the financial statements. In fact, financial statements are a summary of management’s assertions.

You may refer to Study guide page E1.2 for example.

Programme of work
Can you please let me know where did you come across the term programme of work?

[Ulysses Kwaku Nubueke]

Thank you Assad and Vanessa for detailed explaination given to the terms.

The term audit programme of work was used at a meeting I attended.