PCAOB on Audit Documentation

Question 1

According to PCAOB requirements, audit documentation should be sufficient to allow

An experienced auditor with no previous connection with the engagement to understand the nature, timing, and extent of the work performed.

A member of the engagement team to understand the nature, timing, and extent of the work performed.

A PCAOB staff member to understand the nature, timing, and extent of the work performed.

A member of the AICPA staff to understand the nature, timing, and extent of the work performed.

Answer 1

An experienced auditor with no previous connection with the engagement to understand the nature, timing, and extent of the work performed.

This answer is correct because the standard requires the work to be understood by an experienced auditor having no previous connection with the engagement.

Question 2

Under the requirements of the PCAOB, audit documentation should be retained

For at least seven years.

Through the documentation completion date.

Through the report issuance date.

Through the stated requirements in the audit report.

Answer 2

For at least seven years.

This answer is correct because the auditor should retain the documentation for the longer of seven years or of any legal requirements.

Question 3

For audits of public companies, audit documentation must be assembled within how many days of the report release date?

30 days.
45 days.
60 days.
90 days

Answer 3

45 days.

PCAOB auditing standards specify a documentation completion date of no more than 45 days following the report release date.

Question 4

According to PCAOB auditing standards, after the documentation completion date,

Documentation can be added or deleted as deemed appropriate.

Documentation can be added but not deleted.

Documentation cannot be added but can be deleted.

Documentation cannot be added or deleted

Answer 4

Documentation can be added but not deleted.

PCAOB Auditing Standards state that additional documentation can be added after the documentation completion date (which requires further documentation of the reasons why, etc.), but nothing can be deleted after that date.

Question 5

Audit documentation associated with public companies must be retained for at least

3 years.
5 years.
7 years.
10 years.

Answer 5

7 years.

PCAOB auditing standards specify a 7-year retention period for audit documentation.