10 - Documentation Flashcards
What is audit documentation?
Record of procedures performed, evidence obtained and conclusions reached.
Leaves a trail so people can see why you got to the conclusion you did
What does audit documentation provide?
Evidence for the auditors basis for a a conclusion about the achievement of the overall objectives of the auditor
Evidence that the audit was planned and performed in accordance with ISAs and applicable legal and regulatory requirements
What should working papers show?
Name of client, name of preparer, date of preparation, reporting date, subject of the working paper, file reference of the working paper, name and date of the reviewer, objective of the work done, the source of information, how samples were tested and the sample size. The work done and a key to any audit symbols. Cross referencing, result obtained, analysis of errors, conclusion and key points highlighted
What are automated working papers?
Makes work easier.
Risks of errors reduced as no human errors. Neat and easy to follow. Lot sof time saved due to easiness of updating paper. Don’t need to carry lots of papers just one file. Seniors can check your files whilst you are updating them so it is more efficient
What is the difference between permanent audit files and current audit files?
Permanent mean info of importance to this years and future years audit but current is just this years
Permanent:
Engagement letter
New client questionnaire
Legal docs
Details of company and history
Board minutes
Previous years signed accoutns anfd analytical procedures
Accounting system notes
Current:
FS
Accounts checklists
Summary of unadjusted errors
Report to partner including details of significant events or errors
Board minutes
Communications with 3rd parties such as experts or other auditors
A lead schedule including details of the figures to be included in the accounts
Details of tests of details and tests of control and any conclusions drawn
Safe custody and retention of documentation
Good security procedures over their retained working papers. Must be kept securely in locked premises. Electronic documents should be protected by electronic controls.
How long does the ICAEW require all firms and registered auditors to keep all audit working papers?
For at least 6 years from the year end of the accounting period
Ownership of and rights of access to documentation?
Working papers belong to the auditors not the comapany. The audit report becomes the clients property once it is issued.
Assurance providers aren’t required to show them to clients due to confidentiality of working papers.
Info should not be made available to 3rd parties without the permission of the client.
