QRS & Associates, a firm of Chartered Accountants, is handling multiple audit engagements across diverse industries. One of its clients, Nova…

Following matters should be considered generally while preparing an Audit Programme: Stay within the scope and limitation of the assignment.Prepare a written audit programme setting forth the procedures that are needed to implement the audit plan.Determine the evidence reasonably available and identify the best evidence for deriving the necessary satisfaction.Apply only those steps and procedures which are useful in accomplishing the verification purpose in the specific situation.Include the audit objectives for each area and sufficient details which serve as a set of instructions for the assistants involved in audit and help in controlling the proper execution of the work.Consider all possibilities of error.Co-ordinate the procedures to be applied to related items. Evolving one audit programme Not Practicable for All Businesses: Businesses vary in nature, size and composition; work which is suitable to one business may not be suitable to others; efficiency and operation of internal controls and the exact nature of the service to be rendered by the auditor are the other factors that vary from assignment to assignment. On account of such variations, evolving one audit programme applicable to all businesses under all circumstances is not practicable. In view of the above mentioned provisions, CA B is correct in emphasizing the need for a different audit programme for Sparkle Retail Ltd., as the nature and circumstances of the engagement differ significantly from those of Nova Manufacturing Ltd.