Audit documentation. girl 230

This International Standard on Auditing (ISA) deals with the auditor's responsibility to prepare audit documentation for an audit of financial statements. The appendix lists other ISAs that contain requirements and guidelines for specific documentation.

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The specific documentation requirements of other ISAs do not limit the application of this ISA. The law or regulation may establish additional documentation requirements.

Nature and purpose of audit documentation

Audit documentation that meets the requirements of this ISA and the specific documentation requirements of other relevant ISAs provides:

Evidence to achieve the conclusion of the audit work; and Evidence that the audit was planned and carried out in accordance with the ISA and applicable legal and regulatory requirements.

Definitions

Audit documentation. Recording of audit procedures performed, relevant audit evidence obtained, and auditor's conclusions (terms such as "working papers" or "working paper" are also sometimes used).

Audit file. It refers to one or more folders or files or other storage media, either in physical or electronic form that contain the work papers or the audit documentation of a specific job.

Experienced auditor. A professional (internal or external to the firm) with practical audit experience, and a reasonable understanding of:

The audit process. The ISAs and applicable legal and regulatory requirements. The business environment in which the entity operates, and The matters of auditing and financial information relevant to the sector in which the entity operates.

Requirements Timely preparation of audit documentation

Documentation of the audit procedures performed and audit evidence obtained.

The auditor should prepare audit documentation that is sufficient to enable an experienced auditor, who has no prior connection to the audit, to understand:

The nature, timing, and extent of the audit procedures performed to comply with the ISAs and applicable legal and regulatory requirements. The results of the procedures and the audit evidence obtained. The significant issues that arose during the audit, conclusions reached, and the important professional judgments taken to reach those conclusions.

A3. The auditor may include extracts or copies of the entity's records (for example, important and specific contracts and agreements) as part of the audit documentation.

A4. The auditor does not have to include preliminary drafts of working papers, financial statements, notes reflecting incomplete or preliminary ideas, previous copies of documents corrected for typing or other errors, or duplicate audit documentation.

TO 5. The auditor's verbal explanations do not represent a support for the work performed or the conclusions reached, but can be used to explain or clarify the information contained in the audit documentation.

In documenting the nature, timing, and extent of the audit procedures being performed, the auditor should record:

The characteristics that identify the specific items or issues that were tested. Who performed the audit engagement and the date the engagement was completed; and Who reviewed the audit engagement and the date of such review.

Inapplication of a requirement

When in exceptional circumstances, the auditor deems it necessary to deviate from a basic standard or essential procedure that is relevant to the audit, it must document how the alternate audit procedures performed achieve the audit objective, except when the reasons for such deviation are obvious..

Compilation of the final audit file

The auditor should assemble the audit documentation in an audit file and complete the administrative process of concluding the final audit file in a timely manner after the date of the auditor's report.

A21. NCC 1 (ISQC) requires firms to establish policies and procedures for the timely completion of the compilation of audit files. The completion and closing of audit work papers must be carried out within a period not exceeding 60 days after the date of the auditor's report.

NCC 1, Guide A55

When two or more different reports are issued, with respect to the same information of the matter in question of an entity, the policies and procedures of the firm regarding the deadlines for the final assembly of the commitment files for each report, will be treated as if it were separate commitments. This may, for example, be the case when the firm issues an audit report on the financial information of a component for group consolidation purposes and, at a later date, an audit report on the financial information for the same legal purposes..

A22. The completion and closure of audit working papers after the date of issuance of the report is an administrative process that does not imply the performance of new procedures or the formulation of new audit conclusions. However, changes to the audit documentation can be made during the process of completing and closing working papers as long as they are administrative in nature. Some examples of these changes include the following:

Delete or discard the documentation that is replaced. Order, collate and cross-reference the work papers. Authorize the work programs used to verify the completion of the audit or those matters related to the formation of the work paper files. Document the audit evidence that the auditor has obtained, discussed, and agreed with members of the audit team prior to the date of the report. After completing the final audit file compilation, the auditor should not delete or discard documentation from Audit of any nature before the end of your retention periodWhen the auditor considers that it is necessary to modify the existing audit documentation or add new audit documentation after the working papers have been closed, regardless of the nature of the modifications or additions, he should document the following:

The specific reasons for doing them; and When and by whom they were made and reviewed.

Annexed

Specific requirements for audit documentation in other ISAs.

ISA 210, Agreement on the terms of audit engagements. P 10-12 ISA 220, Quality Control for an Audit of Financial Statements. P 24-25 ISA 240, Auditor Responsibilities Regarding Fraud in an Audit of Financial Statements. P 44-47 ISA 250, Consideration of Laws and Regulations in an Audit of Financial Statements. P 29NIA 260, Communication with those charged with governance. P 23 ISA 300, Planning an Audit of Financial Statements. P 12NIA 315, Identification and evaluation of the risks of material error by understanding the entity and its environment. P 32 ISA 320, Materiality in Planning and Executing an Audit. P 14 ISA 330, Auditor's Responses to Evaluated Risks. P 28-30 ISA 450, Evaluation of Material Errors Identified During the Audit. P 15NIA 540,Audit of accounting estimates, including accounting estimates of fair value, and related disclosures. P 23 ISA 550, Related Parties. P 28 ISA 600, Special Considerations Audits of Group Financial Statements

(including the work of component auditors). P 50