Summary of SA 230

AUDIT DOCUMENTATION

Audit documentation

Records of

v  Audit procedures performed,

v  Relevant audit evidences obtained,&

v  Conclusions the Auditor reached.

Who prepare the Audit Documentation?

Auditor

Audit file

File containing the Audit Documentation.

Either in physical or electronic form.

Purpose of Audit Documentation

v  To demonstrate that audit was conducted as per rules & regulations.

v  Assisting the engagement team for planning & performing the audit.

v  Act as reference for suture audits,

v  Enabling the conduct of quality control review

v  Enabling the engagement team to be accountable for its work.

Auditor’s Responsibility

v  To prepare Audit Documentation on timely basis i.e. before completion of audit,

v  To compile the audit file within 60 days of completion of audit,

v  To retain audit file at least for 7 years from the date of auditor’s report.

Audit documentation Contents

v  Must be in legible format.

v  Nature, time & extent of audit;

v  Discussions made with the management on significant matters;

v  Procedures performed in case of subsequent events,

v  In case of departure from SA, reason for such departures & details of new procedures;

v  Audit evidences obtained,

v  Conclusions drawn,

v  In case of inconsistencies between auditor’s opinion & evidences, reason for such & how it was addressed by the auditor.

Point to be Noted :-

1.     Audit documentation is the property of the auditor.

2.     He may at his discretion, make portion of, extracts from, audit documentation available to clients.

3.     Provided that such disclosure should not undermine the validity of work performed by the auditor.