Documentation Flashcards
What is audit documentation?
Working papers - record of procedures performed, evidence and conclusion
Why do we document assurance work?
It’s evidence of work done, planning and basis of conclusion in accordance with legal requirements
assist planning
assist with supervision of work
to be accountable
record matters relating to future audits
enable experienced auditor to carry out reviews and inspections
What should be included in working papers?
Name of client
Reporting/review date
File ref
Name of preparer/reviewer
Subject
Objectives
Source of info
How sample selected/size determined
Work done
A key
Cross-referencing
Results
Observations
Analysis of errors
Conclusions
Key points
What are the advantages to automated working papers?
Error risk reduced
Neater and easier to read
Time saving
Can be dine remotely
Emailed or faxed
Scanned and store electronically
What should be included in the permanent audit file?
Engagement letters
New client questionnaire
Memorandum and articles of association
Legal documents
History of business
Board minutes
Previous signed accounts
Notes and previous questionnaires
What should be included in the current audit file?
Financial statements
Checklists
Summary of unadjusted errors
Report to partner
Audit planning memorandum, time budgets, risk assessments
Written representation from management
Notes on board minutes
Communication with 3rd parties
Lead schedule
Tests of detail and control and conclusions
What are the custody and retention policies for working papers?
Keep papers secure and in locked room with electronic controls
Keep documents for 6 years after end of accounting period
Who owns the working papers?
The assurance provider
Who owns the audit report?
The client
