Documentation Flashcards
What should the auditor document?
The overall responses to address the assessed Risk of Material Misstatements at the financial statement level
The nature, timing and extent of further audit procedures
The linkage of those procedures with the assessed risks at the relevant assertion level. The extent or quantity of audit procedures is determined by the auditor’s judgment. Or should consider the assessed risk of material misstatements, the tolerable misstatement, and the degree of assurance desired.
The results of the audit procedures.
What should be in the engagement documentation package?
Index to engagement documentation that identifies the components of the documentation
Final Report indicating the date of the report
Assignment Information form
Engagement (Start) Letter
Fraud Brainstorming Discussion document
Entrance Conference document
Independence Representations
Planning Memorandum and program Point Sheets (if findings have been found).
Exit Conference document.
Overall Assessment of Evidence Checklist.
Manager and Bureau Chief Review Checklist.
The working papers must contain a heading. What elements should be included:
Name of entity under audit or review
Name of audit program
Engagement period
Audit identification number
Title of the working paper
