SUMMARY ON SA 230AUDIT DOCUMENTATION

1. SA 230 AUDIT DOCUMENTATION
 AUDIT DOCUMENTATION MEANS :-
 Record of audit procedures performed
 Relevant audit evidence obtained
 Conclusion the auditor reached
 Basic requirements :-
• Work paper should be designed& organized and should be in standardized form.
• Document should be dated, signed &complete
• All significant matters should be documented
• Auditor should maintain confidentiality
 Purpose of documentation:-
• Assisting the engagement team to plan &perform the audit
• Enabling the engagement team to be accountable for its work
• Retaining as a record for future audit
• Enabling the conduct of quality control reviews
• Enabling the conduct of external inspections

2.  Advantages of audit documentation:-
• Provide guidance to audit staff
• Responsibility of work can be fixed
• Act as a defence if charge of negligence is brought against him
• Important in future planning
• Help the seniors to review the work done by assistants
 The auditor shall prepare audit documentation that is sufficient to enable an
experienced auditor to understand :-
• Size and complexity of entity
• Nature of audit procedure to be performed
• To identify the ROMM
• The significance of the audit evidence obtained
• Nature and extent of exceptions identified
 Audit documentation includes :-
• Audit programme
• Summary of significant matters
• Issues memorandum
• Letter of confirmation
• Checklist & analyses

3.  Assembly of final audit file :-
 The auditor shall assemble the audit documentation in a audit file and complete the
admin work of assembling the final audit file on a timely basis (not more than 60
days ) after the date of auditor’s report
 The auditor shall not delete the audit documentation before the end of 7 years
 Assembly of final audit file is admin process and it does involve the performance of
new audit procedures or drawing of new conclusions.
 If in the exceptional circumstances the auditor does not follow the requirement of the
SA’s , the auditor shall document the reasons and the alternative procedures
performed
 Any matters arising after the date of auditor report :-
• i.e., the auditor perform new or additional audit procedures or draw new conclusions
after the date of auditor report , The auditor shall document :-
 Circumstances encountered
 New or additional audit procedures performed , audit evidence obtained , conclusion
reached, and the effect on auditor’s report
 When & by whom the changed to audit documentation where made and reviewed.

4.  Completion memorandum :
• Also known as audit documentation summary it describes :-
 The significant matters identified during the audit
 How they were addressed
 Ownership of audit documentation :-
• Property of auditor
• He may at his discretion, make portion of , or extracts from, audit documentation
available to clients,
• As per SA200 auditor should not disclose any confidential matters relating to client to
any 3rd party unless it is permitted by client
• Client does not have any right to access audit W.P. kept by auditor.
• But the auditor at his discretion show some/complete W.P. to client.
• If he show W.P. to client the rule of confidentiality does not arise.
 Audit note book :-
• It is generally a bound book which record large variety of matters observed during
audit.
• Examples :
o Audit query not solved immediately
o Irregularity observed during the audit
o Important matters for future reverence, etc.

5.  Features of audit note book :-
• Permanent record of auditor.
• Contain all details of work carried out.
• Shows weakness in clients system, which is helpful in formulating audit programme in
future.
• Helps in follow up of work done.
 Working paper files :-
1. Permanent audit file :-
contains matters which do not change very often. This file is updated during each
audit.
2. Current audit file :-
contains matters relating to audit of single period.
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