Assurance - Execution - Documentation

Question 1

Why is documentation important in the execution stage

Answer 1

• Auditors cannot demonstrate that they have obtained SAAE to support their audit opinion and compiled with CAS and applicable legal and regulatory requirement

The purposes
- Enabling the engagement team to be accountable for its work
- Assisting audit supervisor with directly overseeing audit work and discharging review responsibility
- Retaining a record of the matter
- Assisting the engagement teams with planning and performing the next year’s audit

Question 2

What CAS is used for audit documentation

Answer 2

CAS 230 affects the form of content and extent of the working paper. Do not specify what exactly documentation should be prepared
1. Nature, timing, and extent of audit procedures performed to comply with CAS
2. The result of the audit procedures and the audit evidence obtained
3. Significant matter arising during the audit, conclusion reached thereon, professional judgment

Question 3

What is included in a permanent file

Answer 3

• It should be regularly reviewed to be kept up to date, and obsolete information should be removed
• Following types of information
  
  • Background information on the entity
  • All aspects of understanding the entity
  • Administration detail
  • Detail of client - Organization chart, product/ service detail