Final answer:
A detailed instruction explaining the audit evidence to be obtained is known as an audit program. It serves as a guide for auditors to conduct a thorough and efficient audit, ensuring that all important areas are covered and the auditor's efforts are well-organized.
Step-by-step explanation:
A audit program is the detailed instruction that explains the audit evidence to be obtained during the audit. The audit program outlines the nature, timing, and extent of auditing procedures to be performed by the auditors.
It serves as a set of guidelines that directs the auditor on what needs to be done to ensure the audit is thorough and covers all the necessary areas.
The program is designed based on the auditor's understanding of the business and its environment, including internal control.
Preparing a comprehensive audit program is critical to the success of the audit as it ensures that nothing significant is overlooked and that the auditor's efforts are efficiently organized.
It can include tests of controls, substantive tests of transactions, and analytical procedures, among other things.