Annual Audit Manual

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2314 Documentation
Oct-2012

In This Section

Documentation

Documentation guidance

Overview

This section discusses:

  • Documentation requirements for group audits
  • Specific documentation guidance for group audits
Documentation

CAS Requirement

The group engagement team shall include in the audit documentation the following matters (CAS 600.50):

(a)   An analysis of components, indicating those that are significant, and the type of work performed on the financial information of the components.

(b)   The nature, timing and extent of the group engagement team's involvement in the work performed by the component auditors on significant components including, where applicable, the group engagement team's review of relevant parts of the component auditors' audit documentation and conclusions thereon.

(c)   Written communications between the group engagement team and the component auditors about the group engagement team's requirements.

OAG Guidance

In addition to audit documentation required by CAS 230, CAS 600.50, other CASs and other sections of OAG Audit, the group auditor also needs to document the following:

  • Disposition of matters raised by the component auditor, including those in the Memorandum of Work Performed, Report Clearance Summary, and SUM.
  • The amount and rationale for materiality levels used when performing the group audit, including any subsequent changes thereto OAG Audit 2333.
  • An evaluation of the adequacy of the component auditor's work.

When documenting the analysis of components (see OAG Audit 2335), the group engagement team may not need to list out every component so that the analysis reconciles to the consolidated financial statements. Rather, in order to adequately document the professional judgment used in scoping and the decisions made, the group engagement team documents (i) the significant components and the type of work to be performed at each, (ii) components that are not significant where work will be performed to obtain sufficient audit evidence for the group and the nature of the work to be performed and (iii) overall rationale for not performing procedures at the remaining components.

Documentation guidance

OAG Guidance

Documentation—Group and Component Audit Files

Regardless of the circumstances of the audit, electronic working paper files must comply with office documentation standards and OAG policy. If separate audit files are used for the group and its components, auditors are reminded that each audit file must be documented in such a manner as to support their respective audit mandate, including documentation of compliance with CAS 600 requirements as appropriate, on a stand-alone basis. Auditors shall use their judgment to ensure appropriate documentation to the circumstances of the audit.

Document Planning and Completion Activities

Group Audit Programs (PRG), which are only relevant for group audits, are included within the Annual Audit Procedures—Supplement cabinet. The following programs contain considerations for the group engagement team on planning and completion activities specific to group audits:

  • Group Auditor—Planning
  • Group Auditor—Completion