Which of the following best describes the primary purpose of audit programme preparation?

To detect errors or fraud
To comply with GAAP
To gather sufficient appropriate evidence
To assess audit risk

The correct answer is: C. To gather sufficient appropriate evidence.

Audit programs are sets of instructions that auditors use to guide their work during an audit. They are designed to help auditors gather sufficient appropriate evidence to support their opinion on the financial statements.

Sufficient evidence is evidence that is adequate and convincing enough to support the auditor’s conclusions. Appropriate evidence is evidence that is relevant and reliable.

The purpose of audit program preparation is to ensure that the auditor gathers sufficient appropriate evidence to support their opinion on the financial statements. This includes identifying the types of evidence that need to be gathered, as well as the sources of evidence and the procedures that need to be performed.

The other options are incorrect because:

  • Option A is incorrect because the primary purpose of audit program preparation is not to detect errors or fraud. The primary purpose of audit program preparation is to gather sufficient appropriate evidence.
  • Option B is incorrect because the primary purpose of audit program preparation is not to comply with GAAP. The primary purpose of audit program preparation is to gather sufficient appropriate evidence.
  • Option D is incorrect because the primary purpose of audit program preparation is not to assess audit risk. The primary purpose of audit program preparation is to gather sufficient appropriate evidence.