Audit Documentation

Audit documentation – definition

The record of audit procedures performed, relevant audit evidence obtained, and conclusions the auditor reached (terms such as “working papers” or “work papers” are also sometimes used).

ISA 230 Scope

ISA 230 deals with the auditor’s responsibility to prepare audit documentation for an audit of financial statements.

Effective Date of ISA 230 on or after 15 December 2009

ISA 230 Objective

Prepare documentation that provide;

• Evidence of the auditor’s basis for a conclusion about the achievement of the overall objectives of the auditor; and
• Evidence that the audit was planned and performed in accordance with ISAs and applicable legal and regulatory requirements.

Definitions

For definitions refer definitions page.

ISA 230 Requirements

1. Prepare audit file on timely basis.
2. Documentation must be such that is sufficient to enable an experienced auditor, having no previous connection with the audit, to understand the nature, timing, result and significant matter in audit.
3. Document the characteristics of specific item tested, who performed, who reviewed, discussion of matters, how inconsistency are addressed, departure from requirement of any ISA and alternative procedure performed.

Matters Arising after the Date of the Auditor’s Report

• If, in exceptional circumstances, the auditor performs new or additional audit procedures or draws new conclusions after the date of the auditor’s report, the auditor shall document circumstances encountered, new or additional audit procedure and their results, and who and on what date change in documentation are made.

—-Final audit file must be assembled on timely basis (Usually 30 days from date of audit report) and should be kept for minimum retention period (usually 5 to 10 years).

—-If file change after final assembly document specific reason and by whom and date should be documented.