SA 230: Audit Documentations

This Standard deals with the auditor’s responsibility to prepare audit documentation for an audit of financial
statements. It also deals with the requirements of timely preparation of audit documentation; documentation of
the audit procedures performed and audit evidence obtained and assembly of the final audit file. It outlines
about vesting of property of working papers with the Auditor. SQC 1 read with SA 230 spells out two essential
principles viz. period of maintaining working papers and assembly of audit file by the auditor.

According to SA 230, Audit Documentation refers to the record of audit procedures performed, relevant audit evidence obtained, and conclusions the auditor reached. Preparing sufficient and appropriate audit documentation on a timely basis helps to enhance the quality of audit and facilitates effective review and evaluation of audit evidence obtained and conclusions reached before finalizing auditor’s report. According to this standard, retention period for audit engagements ordinarily is no shorter than ten years from the date of auditor’s report, or, if later, the date of group auditor’s report .