Sa 230

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 3 rd 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 : Audit query not solved immediately Irregularity observed during the audit 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 :- Permanent audit file :- contains matters which do not change very often. This file is updated during each audit. Current audit file :- contains matters relating to audit of single period. ------------------------------------------------THANK YOU----------------------------------------------------