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Difference between the audit plan and the audit program


The audit plan is refers to the scheme formulated by the auditor that is part of the strategy or approach, which is followed to carry out the audit. On the other hand, the audit program It involves a series of verification procedures, which apply to the final accounts, to acquire audit evidence and, therefore, help the auditor to provide an informed opinion.

While conducting the audit, the auditor requires evidence, in support of your opinion. A collection of evidence is the beginning of the audit process. And to do so, an auditor prepares an appropriate outline of the work, along with the techniques. The audit plan and the audit programs are the two main tools used by the auditor for this purpose.

For a layman, there is no difference between these two, but the fact is that there is a thin line of demarcation in the middle of the audit plan and the audit program, which we have compiled in the given article. Have a look.

Comparative graph

Basis for comparison Audit plan Audit program
Sense The audit plan refers to the strategies or guidelines that the auditor follows to perform the audit. The audit program is the list of steps that audit staff must follow to obtain sufficient audit evidence.
What is it Basic principle of the auditor. Series of exam and verification steps.
He passed First Second

Definition of Audit Plan

The audit plan can be understood as the plan to carry out the audit of an organization, which includes strategies or guidelines.

The audit plan is the fundamental principle of the audit, which says that the auditor must acquire details of the business carried out by the client. This is to determine the nature, time and scope of the audit procedures, which are carried out by the members of the work team. In addition to other facts, it must be developed to cover:

  • Obtain knowledge of the client's business, that is, policies, accounting system, internal control procedures, etc.
  • Configuration of the certain degree of confidence that is based on internal control.
  • Determine the nature, time and scope of the audit procedures.
  • Coordination of the audit work.

Audit planning is a regular process, which begins right after the compliance of the previous auditor and tends to last until the current commitment is fulfilled. The audit plan must be so flexible that it can be modified or revised, depending on the circumstances.

Audit Program Definition

An audit program is the plan of the audit plan, which specifies how the audit will be carried out, who will perform it and what are the steps to follow to carry out it. It is a set of instructions that the audit staff pursues for the correct execution of the audit.

Once the audit plan is formulated, an audit program is developed that includes several steps. It is nothing more than a comprehensive plan to implement audit procedures, under specific conditions, with instructions to select the appropriate method to achieve the objectives of the audit. It is mainly based on the size of the entity and other similar factors.

The audit program determines what and how much evidence or facts should be obtained and analyzed. In addition, it establishes responsibilities for the audit staff to carry out the audit. The audit program should be flexible enough to be reviewed, according to prevailing conditions.

Key differences between the audit plan and the audit program

The difference between the audit plan and the audit program can be clearly established for the following reasons:

  1. The audit plan is defined as the scheme or design prepared by the auditor to perform an audit effectively. On the other hand, the audit program refers to an exhaustive plan consisting of a list of verification steps, which will be implemented, to the final accounts of the organization, to collect sufficient data and evidence, in order to facilitate the auditor to express your opinion .
  2. An audit plan is nothing more than a primary principle of the audit. On the contrary, the audit program is a series of exam and verification steps.
  3. The auditor first designs the audit plan, after which a comprehensive audit program is created comprising several steps.