Chapter 10

Question 1

how should documentation be treated?

Answer 1

documentation, in the form of working papers, should be maintained for all assurance engagements

Question 2

what are the 3 features of working papers?

Answer 2

• support conclusions drawn by the assurance provider
• provide understanding of work undertaken
• provide evidence of compliance

Question 3

what do working papers provide a record of?

Answer 3

• planning and performance of engagement
• supervision and review of performed work
• evidence obtained
• quality control procedures

Question 4

how are working papers held?

Answer 4

paper, film. electronic or other media
- automatic working paper packages have been developed which can make documentation a lot easier

Question 5

what is ISA (UK) 230 rules of audit working papers?

Answer 5

audit documentation must be sufficient to allow…
an experienced auditor with no previous connection with the audit to understand…
- audit work performed
- evidence obtained
- significant matters arising
- conclusions reached

Question 6

what should working papers show?

Answer 6

• name of client
• reporting date
• file reference
• name of preparer/date
• name of reviewer/ date
• subject of working paper
• objective
• source of infomation
• sample size
• work performed
• results in conclusions drawn
• analysis of errors

Question 7

what are the 2 types of audit file?

Answer 7

1. permanent audit file
2. current audit file

Question 8

what is a permanent audit file?

Answer 8

• matters of a permanent or semi permanent nature
• suitably indexed
• prepared at the commencement of the initial audit for the client
• reviewed and updated at commencement of subequent audits

Question 9

what is a current audit file?

Answer 9

• relates to set of accounts or statements being audited
• suitably indexed
• prepared for client on each occasion

Question 10

what does the ICAEW require with document rention?

Answer 10

• requires all firms to have a document retention policy
• documents must be kept for 6 years after the end of the accounting period to which it relates to
• ISA 230 requires documentation to be kept for a minimum 5 years from date of auditors report

Question 11

who do the working papers created by the assurance provider belong to?

Answer 11

• belong to assurance provider
• must be kept confidential
• maybe show to client at their discretion
• should not be shown to third party without client permission