Question (6-26)
a. What is the purpose of an audit program?
Audit programs are designed to assure that all procedures and guidelines are followed.
All documents and financial statements are done correctly and comply with Sarbanes
Oxley. Identify what procedures need to be done and what individual will perform them.
The overall process of the company and how it is ran.
b. Explain why auditors translate audit assertions into specific audit objectives when
developing an audit program.
Auditors translate audit assertions into specific audit objectives when developing an audit
program because of several reasons. First, auditors need to set audit goals for every
assertion for all important account balance or classes of transactions. On the other hand
for more practical reasons, the auditor has to set objectives. If an auditor confirms the
balance of accounts receivable, there is evidence supporting the assertion of existence
however this balance does not give any support to the individual that payments will
actually be received from the customers. In this case the auditor will have to set
objectives relating to the accounts receivable back log to evaluate if the accounts
