Chapter 13 Overall Audit Plan and Audit Program

Key objectives:

1. Know the five types of audit tests. 4. Understand how the tests are emphasized in different circumstances. 5. Know the methodology for designing an audit program. 6. Understand the relationship of transaction-related audit objectives to balance-related audit objectives. 7. Integrate the four phases of the audit process.

1. Audit program

The importance of the audit program cannot be underemphasized. It contains all the procedures that the auditor considers necessary in the circumstances.

The specific knowledge needed to construct the audit program for tests of transactions (tests of details of balances) is covered in Chapter 13 (15).

2. Risk Assessment Procedures - The auditor is required to perform risk assessment procedures, including procedures to gain an understanding of the internal control system (Ch. 10). This includes sufficient documentation and inquiries, as well as a walk-through to support the understanding.

3. Types of Tests - there are four types of further audit procedures auditors perform after performing risk assessment procedures:

| | |Relation to |
| | |Risk Model |
|Test |Name |CR |PDR |
|TOC |Tests of Controls |X | |
|STOT |Substantive Tests of Transactions |X |X |
|AP |Analytical Procedures | |X |
|TODB |Tests of Details of Balances |