Audit program can be classified into following two groups:
1. Fixed Audit Program
Generally, auditor prepares audit program on the suggestions and recommendation of assistant staffs but such program can not be changed during the course of audit which is known as fixed audit program. Such program, due to pace of time or change in the situation and size of the client needs to change even though it can not be changed. Fixed audit Program can be used in all the organizations.
Advantages Of Fixed Audit Program
* Fixed audit programs are prepared once and program is used in all the organization. So, it saves time and cost.
* All the works are completed within the stipulated time because auditor does not change such program on the request of assistant staff.
* Audit program fixes the responsibility of assistant staffs. So, they know their responsibility and complete their work in time which helps to prepare and present report in time.
Disadvantages Of Fixed Audit Program
* Such program is rigid. So, it cannot be used in all organizations because nature and size of all the businesses do not remain same.
* Same program will not be useful in the big and small organizations.
* Fixed audit program is unscientific and impracticable because it does not incorporate the changes caused by time and situation.
* Fixed audit program harasses the staffs because intelligent staffs cannot use their skill and knowledge.
2. Flexible Audit Program
An audit program which can be changed as per the need, time, nature of business and auditing standard is known as flexible audit program. Such program should be reviewed on the recommendations and suggestions of assistants. Such change can be made due to change in number of work, nature of business, change in management and their feelings. It is just taken as helping part but assistants can use their knowledge, caliber and intelligence.
Advantages OF Flexible Audit Program
* Auditing remains effective because it can be changed if the change is made in the nature and size of business.
* Assistant staffs remain happy because such programs are prepared incorporating to the problems of assistant staffs.
* Flexible audit program remains effective because it incorporates to the change made due to time and situation.