Annual Audit Manual
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1101 Introduction
Oct-2012
In This Section
General matters to be considered in documenting the audit
CAS Objective
The following CAS objectives are relevant to this section:
The objective of the auditor is to prepare documentation that provides (CAS 230.5):
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a sufficient and appropriate record of the basis for the auditor's report, and
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evidence that the audit was planned and performed in accordance with CASs and applicable legal and regulatory requirements.
The objective of the firm is to design, implement and operate a system of quality management for audits or reviews of financial statements, or other assurance or related services engagements performed by the firm, that provides the firm with reasonable assurance that (CSQM1.14):
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The firm and its personnel fulfill their responsibilities in accordance with professional standards and applicable legal and regulatory requirements, and conduct engagements in accordance with such standards and requirements; and
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Engagement reports issued by the firm or engagement partners are appropriate in the circumstances.
The objective of the auditor is to manage quality at the engagement level to obtain reasonable assurance that quality has been achieved such that (CAS 220.11):
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The auditor has fulfilled the auditor's responsibilities, and has conducted the audit, in accordance with professional standards and applicable legal and regulatory requirements; and
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The auditor's report issued is appropriate in the circumstances.
CAS Guidance
For purposes of the CASs, the following terms have the meanings attributed below (CAS 230.6):
(a) Audit documentation—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).
(b) Audit file—One or more folders or other storage media, in physical or electronic form, containing the records that comprise the audit documentation for a specific engagement.
(c) Experienced auditor—An individual (whether internal or external to the firm) who has practical audit experience, and a reasonable understanding of:
(i) audit processes,
(ii) CASs and applicable legal and regulatory requirements,
(iii) the business environment in which the entity operates, and
(iv) auditing and financial reporting issues relevant to the entity's industry.
OAG Guidance
Audit documentation also may be referred to as working papers or workpapers, regardless of whether it is in electronic form, hard copy form, or other media.
OAG Guidance
Proper audit documentation is critical to an effective, high-quality audit and represents the principal support for our report. CAS 230 Audit Documentation requires that we adequately document our work, including the procedures we apply, the evidence we obtain, and the significant conclusions we reach on a timely basis.
We exercise care in creating our documentation. Also, all of our audit-related communications, whether formal or informal, written or oral, electronic or hard copy, reflect our values of professionalism, due care, objectivity, and professional skepticism.
This guidance in this section covers general requirements and working practices on what to document and include in the audit file.
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Subsection |
Title |
Content |
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Nature, Purpose and Extent of Audit Documentation |
This subsection explains the nature and purpose of audit documentation including the form, content and extent of such documentation. It also explains the benefits of using audit programs. |
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Timely preparation of Audit Documentation |
This subsection explains the importance of timely documentation, as well as the need to sign and date working papers and procedures performed. |
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Documentation of Significant Matters and Related Significant Professional Judgments |
This subsection explains how to identify and document significant matters and provides examples of matters that shall be documented as significant matters and those that may be considered significant in the circumstances. It also explains the relationship between significant risks and significant matters and when significant risks are to be treated as significant matters. |
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Other Documentation Requirements and Considerations |
This subsection explains the specific documentation requirements of the CASs together with other relevant documentation considerations. |
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Documenting Review of Audit Documentation |
This subsection explains the need to evidence the date and extent of review of audit documentation and sets out the minimum documentation requirements of the engagement leader and of the quality reviewer. |
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Assembly of the Final Audit File |
This subsection explains the process of final assembly of audit documentation, including what constitutes an administrative change at the conclusion of the audit, the period allowed for final assembly plus the actions required when documentation is added to the audit file after the date of final assembly or where matters arise after the date of the audit report. |
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Multiple Reports Issued from the Same Audit File |
This subsection explains the final assembly requirements when issuing multiple reports from the same audit file. |
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Retention of Audit Documentation |
This subsection explains the retention policies for audit documentation including what needs to be retained and for how long. It also explains the requirement to maintain confidentiality, safe custody, integrity, accessibility and retrievability of engagement documentation. |