ISA 230 AUDIT DOCUMENTATION
Auditors are responsible to prepare audit documentation for an audit of financial statements. Audit documentation is necessary to support audit opinion on financial statements and confirmation of audit was planned and performed in accordance with ISAs and applicable legal and regulatory requirements . ISA 230 defines objectives and requirements for audit documentation
Summary of ISA 230 AUDIT DOCUMENTATION.
(Is effective for audits of financial
statements for periods beginning on or after December 15, 2009)
Objective
The
objective of the auditor is to prepare documentation that provides:
(a) A
sufficient and appropriate record of the basis for the auditor’s report; and
(b)
Evidence that the audit was planned and performed in accordance with ISAs and
applicable legal and regulatory requirements.
Audit documentation represent the record of
audit procedures performed, relevant audit evidence obtained, and conclusions
the auditor reached. Audit documentation is known as a term “working papers”.
Requirements
Timely
Preparation of Audit Documentation
The auditor shall prepare audit documentation
on a timely basis.
Documentation of the Audit Procedures Performed and Audit Evidence
Obtained
Form, Content and
Extent of Audit Documentation
The auditor shall prepare audit documentation
that is sufficient to enable an experienced auditor, having no previous
connection with the audit, to understand:
(a) The nature, timing and extent of the audit
procedures performed
(b) The results of the audit procedures
performed, and the audit evidence obtained;
(c) Significant matters arising during the
audit, the conclusions reached, and significant professional judgments made in
reaching those conclusions.
In documenting the nature, timing and extent of
audit procedures performed, the auditor shall record: (a) The identifying
characteristics of the specific items or matters tested.
(b) Who performed the audit work and the date
such work was completed; and
(c) Who
reviewed the audit work performed and the date and extent of such review
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
Departure from a
Relevant Requirement
If, in exceptional circumstances, the auditor decides
it necessary to depart from a relevant requirement in an ISA, the auditor shall
document how the alternative audit procedures performed achieve the aim of that
requirement, and the reasons for the departure.
Matters Arising after
the Date of the Auditor’s Report
If, in exceptional circumstances, the auditor
performs new or additional audit procedures or draws new conclusions after the
date of the auditor’s report, the auditor shall document:
(a) The circumstances encountered.
(b) The new or additional audit procedures
performed, audit evidence obtained, and conclusions reached, and their effect
on the auditor’s report; and
(c) When and by whom the resulting changes to
audit documentation were made and reviewed
Assembly of the Final Audit File
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 date of the
auditor’s report.
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. If in some circumstances the
auditor finds it necessary to modify existing audit documentation or add new
audit documentation after the assembly of the final audit file has been
completed, the auditor shall, regardless of the nature of the modifications or
additions, document:
(a) The
specific reasons for making them; and
(b) When and by whom they were made and
reviewed.
Specific Audit Documentation Requirements in Other ISAs
● ISA 210, Agreeing the Terms of Audit
Engagements – paragraphs 10–12
● ISA 220, Quality Control for an Audit of
Financial Statements – paragraphs 24–25
● ISA
240, The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial
Statements – paragraphs 45–48
● ISA 250 (Revised), Consideration of Laws and
Regulations in an Audit of Financial Statements – paragraph 30
● ISA
260 (Revised), Communication with Those Charged with Governance – paragraph 23
● ISA 300, Planning an Audit of Financial
Statements – paragraph 12
●ISA
315 (Revised), Identifying and Assessing the Risks of Material Misstatement
through Understanding the Entity and Its Environment – paragraph 32
● ISA 320, Materiality in Planning and
Performing an Audit – paragraph 14 ● ISA 330, The Auditor’s Responses to
Assessed Risks – paragraphs 28–30
● ISA 450, Evaluation of Misstatements
Identified during the Audit – paragraph 15
● ISA 540 (Revised), Auditing Accounting
Estimates and Related Disclosures – paragraph 39
● ISA 550, Related Parties – paragraph 28
● ISA 600, Special Considerations—Audits of
Group Financial Statements (Including the Work of Component Auditors) –
paragraph 50
● ISA 610 (Revised 2013), Using the Work of
Internal Auditors – paragraph 36–37
● ISA 720 (Revised), The Auditor’s
Responsibilities Relating to Other Information – paragraph 25
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