AUD 2.2 - Documentation Flashcards
This is the principal record of audit procedures performed, evidence obtained, and conclusions reached:
Audit documentation (working papers)
Audit documentation should indicate what?
That the accounting records support the financials
The date on which the auditor grants the client permission to use the report. This is often the date which the report is delivered to the client.
Report release date
Under SAS rules (Nonissuers), how long should audit documentation be retained for?
Under PCAOB rules (issuer), how long should audit documentation be retained for?
SAS (Nonissuer) = 5 years
PCAOB (issuer) = 7 years
This date is the date existing documentation must not be deleted, and additions to the audit documentation must be documented as such. This is after the report release date.
Documentation completion date
How many days following the report release date does the SAS Rules (nonissuers) allow for the completion date?
How many days following the report release date does the PCAOB rules (issuer) allow for the completion date?
SAS (nonissuer) = 60 days
PCAOB (issuer) = 45 days
What is the objective of detailed substantive testing?
To detect material misstatement
What is the difference between a permanent file and a current file?
The permanent fi is carried forward from year to year and includes this such as contracts, pension plans, leases, stock options, meeting minutes, bond indentures, etc.
The current file includes “this years stuff” including test of controls and substantive tests
Significant audit findings are included in the current file and include matter that:
Are related to the selection and application of accounting principles
Give rise to significant risk
Related to possible material misstatement
Cause difficulty in applying audit procedures
May result in modification of the auditors opinion
