Documentation Flashcards
The auditor will prepare documentation in relation to the fieldwork carried out on an assurance engagement.
Is the following a valid reason for preparing such documentation?
To comply with the law
Not valid. There is no legal requirement for the auditor to prepare working papers
The auditor will prepare documentation in relation to the fieldwork carried out on an assurance engagement.
Is the following a valid reason for preparing such documentation?
To provide a record of matters of continuing significance to future audit
Valid
The auditor will prepare documentation in relation to the fieldwork carried out on an assurance engagement.
Is the following a valid reason for preparing such documentation?
To facilitate review by senior staff
Valid
The auditor will prepare documentation in relation to the fieldwork carried out on an assurance engagement.
Is the following a valid reason for preparing such documentation?
To prove adherence to ISAs in a litigious situation
Valid
What are some examples of working papers that go in the current audit file?
Financial statements relating to year under review
Accounts checklists
Audit planning memo
What are some examples of working papers that go in the permanent audit file?
Engagement letters
New client questionnaire
Board minutes of continuing relevance
Accounting systems notes
Which three of the following are true?
A. Working papers belong to the auditor
B. The issued auditor’s report belongs to the auditor
C. Auditors should retain working papers securely because of the duty of confidentiality
D. Auditors need client permission to share working papers with third parties
A,C,D
