A2 - M3 - Documentation

Question 1

Do an auditor’s workpapers support the audit opinion, or do they support the client’s financial statements?

Answer 1

They support the auditor’s opinion. The client’s records support the client’s financial statements.

Question 2

What should the audit documentation (workpapers) have?

Answer 2

The nature, extent, and timing of the audit procedures performed.

The results of the procedures performed, and the evidence obtained;

The significant findings or issues arising during the audit; and

The conclusions reached, and significant judgments made to reach those conclusions.

Question 3

Should the audit workpapers always show the sign off of the prepare along with the date, and the reviewer along with the date?

Answer 3

Yes, always

Question 4

When possible, should audit documentation provide evidence that professional skepticism was maintained throughout the audit?

Answer 4

Yes

Question 5

What is the report release date?

Answer 5

This is the date when the auditor grants the client permission to use the audit report.

This is normally the same date as the audit report date.

Question 6

How long do auditor’s need to keep this audit documentation for non-issuers?

Answer 6

Auditor’s must keep this documentation for at least 5 years.

Question 7

How long do auditor’s need to keep this audit documentation for issuers?

Answer 7

Auditor’s must keep this documentation for at least 7 years.

Question 8

What is the documentation completion date? How much time do they have to do this?

Answer 8

This is when an auditor is granted a certain window of time following the report release date to assemble and organize any final audit documentation.

60 days for audits of non-issuers; and 14 days for audits of issuers.

Question 9

What is the perm file?

Answer 9

This is a file where the documentation will be used year after year, so you keep in this file to keep using for future years.

Question 10

What is the current file?

Answer 10

This is items that relate just for the current year.