ISA 230, deal with the auditor’s
responsibility to prepare the audit documentation. Audit Documentation is
defined in ISA 230 as “The record of audit procedures performed, relevant audit
evidence obtained, and conclusions the auditor reached (terms such as “working
papers” or “workpapers” are also sometimes used).” The auditor shall prepare
audit documentation that is sufficient to enable an experienced auditor, having
no previous connection with the audit, to understand
- · The nature, timing and extent of the audit procedures performed
- · The results of the audit procedures performed
- · Significant matters arising during the audit and the conclusions reached thereon
In documenting the nature, timing and
extent of audit procedures performed, the auditor shall record:
- · The identifying characteristics of the specific items or matters tested;
- · Who performed the audit work and the date such work was completed; and
- · Who reviewed the audit work performed and the date and extent of such review.
The auditor shall assemble the audit
documentation in an audit file and complete the administrative process of
assembling the final audit file on a timely basis. After the assembly of the
final audit file has been completed, the auditor shall not delete or discard
audit documentation of any nature before the end of its retention period.
Audit documentation may be recorded on
paper or on electronic or other media. Examples of audit documentation include:
- · Audit programs.
- · Analyses.
- · Issues memoranda.
- · Summaries of significant matters.
- · Letters of confirmation and representation.
- · Checklists.
- · Correspondence (including e-mail) concerning significant matters.
However it should be kept in mind that
neither auditing standards nor any audit firm policy prohibits the audit team
members from including documentation in the file that they believe necessary to
support their work.
Practice
Documentation prepared after the audit
work has been performed is likely to be less accurate than documentation
prepared at the time such work is performed. ISQC 1, requires firms to establish
policies and procedures for the timely completion of the assembly of audit
files. An appropriate time limit within which to complete the assembly of the
final audit file is ordinarily not more than 60 days after the date of the
auditor’s report.
