Auditing
Audit Documentation
Purpose:
1. Main evidence of procedures, work performed on audit 2. Prepare sufficient & appropriate audit documentation on timely basis 3. enhance audit quality 4. facilitate effective review 5. evaluate audit evidence obtained & conclusions reached before finalizing auditor’s report 6. assisting audit team plan & perform for audit 7. assist audit team members’ supervise & direct audit work, discharge responsibilities (Quality Control for an Audit) 8. enable team account for its work 9. retain record (continuing significant matters) future audits 10. enable experienced auditor conduct engagement QC reviews & inspections 11. enable conducting external inspections with applicable legal, regulatory requirements
Types of audit documentation 1. audit strategy, audit plan 2. audit programs 3. analysis, analytical procedures worksheets 4. internal control questionnaires, evaluation questionnaires 5. significant matters’ summaries 6. confirmation letters (for trade receivable confirmation) 7. representation letters 8. checklists 9. correspondence concerning significant matters 10. copies: entity’s records, e.g. contracts, agreements
Form, content 1. using standard schedules, computer program standard audit program standard internal control questionnaire standard audit file structure
Permanent file * document continuous important materials, info relevant to audit entity’s financial statements
1. permanent file index, checklist 2. admin. Info primary client’s contact, position, audit location, approximate audit time each year
3. special instruction, agreement with entity reporting deadline, group audit instruction in common
4. engagement letter’s copy, amendments, updates 5. current files’ list maintained for entity
6. entity’s general background group structure (subsidiaries’ name,
Purpose:
1. Main evidence of procedures, work performed on audit 2. Prepare sufficient & appropriate audit documentation on timely basis 3. enhance audit quality 4. facilitate effective review 5. evaluate audit evidence obtained & conclusions reached before finalizing auditor’s report 6. assisting audit team plan & perform for audit 7. assist audit team members’ supervise & direct audit work, discharge responsibilities (Quality Control for an Audit) 8. enable team account for its work 9. retain record (continuing significant matters) future audits 10. enable experienced auditor conduct engagement QC reviews & inspections 11. enable conducting external inspections with applicable legal, regulatory requirements
Types of audit documentation 1. audit strategy, audit plan 2. audit programs 3. analysis, analytical procedures worksheets 4. internal control questionnaires, evaluation questionnaires 5. significant matters’ summaries 6. confirmation letters (for trade receivable confirmation) 7. representation letters 8. checklists 9. correspondence concerning significant matters 10. copies: entity’s records, e.g. contracts, agreements
Form, content 1. using standard schedules, computer program standard audit program standard internal control questionnaire standard audit file structure
Permanent file * document continuous important materials, info relevant to audit entity’s financial statements
1. permanent file index, checklist 2. admin. Info primary client’s contact, position, audit location, approximate audit time each year
3. special instruction, agreement with entity reporting deadline, group audit instruction in common
4. engagement letter’s copy, amendments, updates 5. current files’ list maintained for entity
6. entity’s general background group structure (subsidiaries’ name,