how should documentation be treated?
documentation, in the form of working papers, should be maintained for all assurance engagements
what are the 3 features of working papers?
- support conclusions drawn by the assurance provider
- provide understanding of work undertaken
- provide evidence of compliance
what do working papers provide a record of?
- planning and performance of engagement
- supervision and review of performed work
- evidence obtained
- quality control procedures
how are working papers held?
paper, film. electronic or other media
- automatic working paper packages have been developed which can make documentation a lot easier
what is ISA (UK) 230 rules of audit working papers?
audit documentation must be sufficient to allow…
an experienced auditor with no previous connection with the audit to understand…
- audit work performed
- evidence obtained
- significant matters arising
- conclusions reached
what should working papers show?
- name of client
- reporting date
- file reference
- name of preparer/date
- name of reviewer/ date
- subject of working paper
- objective
- source of infomation
- sample size
- work performed
- results in conclusions drawn
- analysis of errors
what are the 2 types of audit file?
- permanent audit file
- current audit file
what is a permanent audit file?
- matters of a permanent or semi permanent nature
- suitably indexed
- prepared at the commencement of the initial audit for the client
- reviewed and updated at commencement of subequent audits
what is a current audit file?
- relates to set of accounts or statements being audited
- suitably indexed
- prepared for client on each occasion
what does the ICAEW require with document rention?
- requires all firms to have a document retention policy
- documents must be kept for 6 years after the end of the accounting period to which it relates to
- ISA 230 requires documentation to be kept for a minimum 5 years from date of auditors report
who do the working papers created by the assurance provider belong to?
- belong to assurance provider
- must be kept confidential
- maybe show to client at their discretion
- should not be shown to third party without client permission
