CA Student Kalyan was going through a topic on "Audit programme” and learnt that an audit programme is designed to provide most appropriate audit…

(a) (i) While looking into the most appropriate evidence in verification of an assertion, the auditor shall consider that evidence is the very basis for the formulation of opinion, and an audit programme is designed to provide for that by prescribing procedures and techniques. What is best evidence for testing the accuracy of any assertion is a matter of expert knowledge and experience. This is the primary task before the auditor when he draws up the audit programme. Transactions are varied in nature and impact. Audit procedures to be prescribed depend on prior knowledge of what evidence is reasonably available in respect of each transaction. In most of the assertions much of the evidence be drawn, and each one should be considered and weighed to ascertain its weight to prove or disprove the assertion. In this process, an auditor would be in a position to identify the evidence that brings the highest satisfaction to him about the appropriateness or otherwise of the assertion. An auditor picks up evidence from a variety of fields, and it is generally of the following broad types: (a) Documentary examination (b) Physical examination (c) Statements and explanation of management, officials and employees (d) Statements and explanations of third parties (e) Arithmetical calculations by the auditor (f) State of internal controls and internal checks (g) Inter-relationship of the various accounting data(h) Subsidiary and memorandum records (i) Minutes(j) Subsequent action by the client and by others. (ii) Most appropriate evidence in respect of: verification of cash in hand is 'count'.verification of investment pledged with bank is the banker's certificate.