10: Documentation Flashcards
Purpose of completing detailed working papers?
Support the conclusions drawn by the assurance provider
Provide an overall understanding of the work undertaken
Provide evidence of compliance with relevant laws, regulations and professional standards
PREPARED and RETAINED!
What do working papers provide a record of?
The planning and performance of the engagement
The supervision and review of the work performed
The evidence obtained which the assurance provider considers necessary, and on which they have relied to arrive at their conclusion
Quality control procedures carried out
According to ISA 230, why must audit documentation be sufficient?
To allow an experienced auditor with no previous connection with audit
To understand:
- audit work performed
- evidence obtained
- significant matters arising
- conclusions reached
What 12 things should working papers show?
Name of client
Reporting date
File reference
Name of preparer/date
Name of reviewer/date
Subject of working paper
Objective
Source of information
Sample size
Work performed
Results and conclusions drawn
Analysis of errors
The two types of audit file and their characteristics?
Permanent audit file
- prepared at the commencement of initial audit for the client
- reviewed and updated at start of subsequent audits
- matters of a permanent or semi-permanent nature
Current audit file
- prepared for the client on each occasion an audit is performed
- relate to the set of accounts or statements being audited
Index only thing in both
How must papers be kept for safe custody?
Paper docs must be kept in a safe location
Electronic docs must be protected using suitable security measures
All must be confidential!!!
What are the number of retention years?
ICAEW requires docs to be kept for 6 years after accounting period it relates to
(they also require that firms have a document retention policy)
ISA 230 requires a minimum of 5 years after the date of the auditor’s report
What are the rights of access for assurance papers?
Papers created by the assurance provider:
- belong to them as they were created in an independent capacity
- must be kept confidential
- may be shown to the client at their discretion
- should not be shown to a third party without their client’s permission
Reports created as an output:
- belong to the client once they have been issued
