ISA 230 - Audit Documentation

Question 1

ISA 230: Audit Documentation:

Answer 1

> Audit Documentation = Audit Working Papers.
Auditors responsibility to prepare and maintain working papers.
Working papers is a record of:
- Procedure followed,
- Evidence obtained, and
- Conclusion drawn.
Serve as the basis for opinion given and is proof of the work done.
It helps to plan and perform Audit efficiently.

Question 2

ISA 230: Maintaining Audit Papers helps in:

Answer 2

> Helps in proper planning and performing of Audit.
Guide the team and keep them Accountable.
Guidance for future Audits
Helps in conducting reviews:
- Quality Review, and
- External inspections by law or regulations.

Question 3

ISA 230: Form, Content, and Extent:

Answer 3

Form:
> It should be such that, an experienced Auditor, just by looking at the papers can understand how Audit was done.

Content:
> Document procedure followed and all significant findings.
> Who and when - Conducted and Concluded the Audit.
> Who and when - Reviewed and Concluded the Audit.

Other Matters to be Documented:
> Document the discussion with management/ those charged with Governance - the Matter, Prrson involved, and Conclusion drawn.
> Auditor should Document the way inconsistency/ alternative procedure are dealt with.
> Mention and Document the departure from the Standards and reasons behind it.
> Document subsequent events

All these documents are compiled and put in an Audit File.

> Maintain a separate Audit File for each Client.
Should be compiled within 60 days from Audit Report.
Once the File is compiled, No additions or deletions can be made except for the administrative purposes.
Auditor will Maintain the file for a minimum of 7 years.
Custodian and ownership of the Audit File is the - Auditors.
No obligation to share the papers unless required by law and regulation.

Extent:
> Nature and size of the organization.
> Complexity of transactions.
> Material misstatements present.