An audit firm, RST & Co., conducted the statutory audit of Bluewing Traders Ltd. During the review of audit files by regulatory authority, it…

An audit firm, RST & Co., conducted the statutory audit of Bluewing Traders Ltd. During the review of audit files by regulatory authority, it was alleged that the auditor failed to exercise due professional care while verifying certain high-value transactions. Also, Bluewing Traders faced financial losses and the management claimed that the auditor was negligent. However, during the proceedings, RST & Co. produced a detailed audit programme that had been prepared before commencing audit work. The programme documented the steps planned, the nature and extent of checking, the responsibilities assigned to assistants and the areas where professional judgement was exercised. It was also signed and approved by the engagement partner. The auditor argued that this properly constructed audit programme demonstrated that reasonable skill and care had been exercised throughout the audit. In the above situation, which of the following best explains why the detailed audit programme prepared by RST & Co. can help defend the auditor against allegations of negligence?