Question

An audit program is created to specify which of the following?

a. The type of audit opinion to be rendered based upon procedures formed.
b. The audit procedures that will be performed every year for the client.
c. How an auditor should think while performing audit procedures.
d. Audit objectives and procedures to be followed during the audit process.

Answer 1

An audit program defines the audit objectives and the procedures to follow during the audit process, serving as a plan for auditors to assess an entity's financial statements.

Step-by-step explanation:

An audit program is designed to outline the audit objectives and the procedures to be carried out during the audit process. This program serves as a comprehensive plan that guides auditors in their work. The aim is to achieve the audit objectives by addressing the risks associated with the financial statements of the entity being audited.

To address the question directly, the correct option is (d. Audit objectives and procedures to be followed during the audit process). The program does not predetermine the type of audit opinion to be rendered (option a), is not restricted to procedures performed every year (option b), nor is it a guide on how an auditor should think (option c). Instead, the program provides a structured approach for assessing an entity's financial statements in accordance with the relevant auditing standards.