ISA 230 – Audit documentation Flashcards
What are the primary objectives of audit documentation according to ISA 230?
The main objectives are:
1) To provide evidence of the auditor’s basis for conclusions and achievement of overall audit objectives;
2) To demonstrate that the audit was planned and performed in accordance with ISAs and applicable legal requirements.
What additional purposes does audit documentation serve?
Audit documentation assists in the planning and performance of the audit, supervising and directing audit work, retaining records for future audits, reviewing the audit evidence to form an opinion, and enabling quality control reviews.
What guidelines are set by ISA 230 for the form, content, and extent of audit documentation?
Documentation must be detailed enough that an experienced auditor with no prior connection to the audit can understand it. It should document the nature, timing, and extent of audit procedures, results, significant matters and conclusions, selection and sampling methods, and review details including materiality calculations and going concern considerations.
What are the differences between permanent and current audit files?
Permanent audit files contain ongoing information useful for future audits, while current audit files contain all evidence pertinent to the current year’s audit. Permanent files are carried forward each year; current files are newly prepared annually.
What typical contents are found in permanent and current audit files?
Permanent files include contracts, organization charts, and details on internal controls. Current files are organized by engagement management, planning, fieldwork for major financial line items, and completion stages.
What information is typically included in a working paper according to ISA 230?
Working papers include the client’s name, year-end, subject area, preparation and review details, sample size calculation, work done, and conclusions. These papers originate from various sources, including client schedules and auditor-generated evidence.
What is the deadline for assembling the final audit file?
The assembly of the final audit file should be completed no later than 60 days from the date of the auditor’s report.
