Value of business: The event of purchase has to be identified within the management and by the sales team. Some technical knowledge is required. There are many advantages of the internal audit. It must have impairments with the quality standards. Staff may also feel manipulated since they will have to participate in the preparation of the new plan, which can vary significantly from the standard audit.
It is disclosed based on the information and explanations that are agreed on by the clients. While each business have a separate problems. It mentions the maximum of the costs so that people can have prior intimation about the auditing. Easy Transfer :- If one assistant is unable to continue the work given to him, it can be given to another person. It involves financial statements that are more compatible when a person goes through the documents and reports of the audit.
Too Mechanical :- Such audit programme is mechanical that it ignores many other aspects like internal control. If the principal impresses upon the audit staff that the program set out id basic upon which the audits is to be conducted and they must use their intelligence when carrying it out, and they should not be encouraged to make surprise checks outside the audit program and to recommend additions and improvement in the scheme. Final Review :- Before signing the report, final review is made and for this purpose also auditing programme is very useful. Supervision Of Work :- The auditor can judge the efficiency of his audit team by holding of an audit programme. Useful For Future :- On completion of an audit, it serves the purpose of audit record which may be useful for future reference.
Fixation Of Responsibility :- If any error or fraud remains undetected the responsibility of negligence will fall on the particular assistant who has performed that job. Settlement of disputes: The disputes between the management can be settled easily that are handled within the past accounts. Audit Program Helps To Maintain Uniformity Works are divided among the assistant staffs; so there is no any chance of leaving non audited statements. The auditor can ask another audit Clerk to count the work of the first clerk. Need of audit staff: It is helpful to determine the number of person needed to do the work. One can take any kinds of loans that the bank offers. New Problems Over Looked :- With the passage of time new problems arise which may be over looked.
It can potentially decrease initiative and inventiveness, with less application of staff talents and abilities. Accounting system: It contains the information about accounting system. So, the program which is prepared at the beginning of the year remains unsuitable. Individual Programme :- According to the nature of the business auditor prepares the programme for each assistant in such cases. Audit programme guides him that what is done and what is remaining. It determines the value of business so as to claim for the purpose of the other networks.
The adjustment is made if there is more work and less time and vice versa, in this way work can be completed in time. Merits or Advantages of Financial Audit: Auditing is a best practice that ensures the growth of public companies. Initiatives on the part of the staff may not be encouraged in the per-determined audit programmes. Basic Instrument For Training :- Audit programme is very useful for the new auditor. A variety of programming languages is used in business. Such a structure is essentially the basis.
Easy Transfer :- If one assistant is unable to continue the work given to him, it can be given to another person. Several Audits may Be Controlled :- The auditor controls the audit of various companies at the same time. No Initiative :- It kills the initiative of capable persons assistant can not suggest any improvement in the plan. Gathering information about profit or loss: This gathering will help in discussing the profit and loss of the company. Assurances are to be provided within the related certification. Once the auditing is done the accounts that are audited are easily accepted by the Government such as Central banks, public authorities.
Audit programmes are used for the testing of internal control and for substantive procedures. It provides training and guidance to him. Harassment of staves: Since the employees cannot express their own in terms of auditing, these changes are calibrated and the employees will fell harassed due to the changes that are caused. The audit work starts after the completion of entries. This updating requires more time and resource devotion to the plan, which would be better used in other productive activities. The books are in the custody of auditors so manipulation is not easy after completion of accounts.
Howard says that final audit is carried through to completion in one continuous session. Without audits, companies would be denied access to these capital markets. Audited accounts carry greater knowledge than the accounts that are under the process of auditing. It has certain proves that acts the real linked data among the other recent ideas. Other advantages: The other advantages are workload distributed, completion of work on time, guidance from senior auditor, work completed on time, negligence control, junior auditor may trained.
The decisions are to be made on the basis of audited accounts. It discloses all details of audit work. He is in a position to know the progress of the work. The auditor uses it as protection, if he is charged with negligence in performing his duties. The auditors can start and complete many audits. It forces the organization to force settle all the disputes.