What does documentation provide evidence for?
The basis of a conclusion about the achievement of the auditor’s overall objectives
Does documentation prove that everything was carried out legally?
Yes
On what basis must documentation be prepared?
Timely basis
What is audit documentation?
Record of procedures performed, relevant evidence obtained and auditor’s conclusions
What info should working papers show?
- Client name
- Reporting date
- Names of preparer and reviewer
- Objectives
- Work done
- Conclusions
What are the advantages of automated working paper packages?
- Risk of error reduces
- Easier to review
- Time-saving
What sort of working papers do most firms use now?
Electronic working papers
What audit files should firms retain?
Permanent and current
Does the ICAEW require all firms to have a documentation retention policy?
Yes
How long does the ICAEW require registered auditors to keep working papers for?
At least 6 years from end of relating accounting period
How must paper docs be protected?
Kept securely in locked premises
How must electronic docs be protected?
By electronic controls
Who technically owns working papers?
Assurance provider
When does the report become the property of the client?
Once issued
Why do assurance providers record their work?
- To help the assurance team to plan and perform the engagement
- To retain a record of matters of continuing significance to the engagement
- To enable an experienced assurance provider to carry out quality reviews
What 2 things are kept on a permanent audit file?
- Engagement letter
- Previous year’s signed financial statements
Is an engagement letter a permanent or current file?
Permanent
Is an audit plan a current or permanent file?
Current
Are manager review notes current or permanent files?
Current
Can an auditor delay the preparation of working papers where significant judgement is required?
No
Do working papers record matters of continuing significance to future audits?
Yes
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Chapter 1 - Concept and need28
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Chapter 2 - Obtaining engagement16
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Chapter 3 - Planning the assignment64
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Chapter 4 - Evidence and reporting28
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Chapter 5 - Intro to internal control and info flow32
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Chapter 6 - Revenue system15
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Chapter 7 - Purchase Systems14
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Chapter 8 - Employee costs11
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Chapter 9 - Internal audit11
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Chapter 10 - Documentation21
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Chapter 11 - Evidence and sampling32
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Chapter 12 - Written representations13
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Chapter 13 - Substantive procedures44
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Chapter 14 - Ethics and regs8
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Chapter 15 - Integrity, objectivity and independence39
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Chapter 16 - Confidentiality14
