Analyze and organize audit evidences related to documentation?
Audit documentation includes records of the planning and performance of the work, the procedures performed, evidence obtained, and conclusions reached by the auditor. Audit documentation also may be referred to as work papers or working papers .Audit evidence are the evidence obtained by the auditor which helps the auditor to reach the appropriate audit opinion.Audit evidence related to documentation includes permanent audit file and current audit file.
Permanent Audit File:-
many documents are carried forward in permanent audit file from year to year which are used for the audit of subsequent years. Here are documents for you to keep in the client’s permanent file:
The current audit file:-
The current audit file contains all the work of the current year’s audit. Here are some of the examples of things in the current file:
The more common types of audit working papers and their principal purposes may be summarised as follows:
(1) Audit administrative—working papers that aid the auditors in planning and administration of the audit, and include such items as audit programs, questionnaires and flowcharts, decision aids, time budgets, and engagement letters.
(2) Working trial balance—represents the backbone of the auditors’ working papers, for it contains the balances of the ledger accounts, the adjustments and reclassifications deemed necessary by the auditors, and the adjusted amounts that appear in the financial statements. It also contains references to all supporting schedules and analyses, thus serving to control the other types of working papers.
(3) Lead schedules—working papers that serve to combine similar general ledger accounts, the total of which appears on the working trial balance.
(4) Adjusting journal entries—material misstatements in the accounts disclosed by the auditors‘ investigation are corrected by means of adjusting journal entries. These appear on the auditors’ working trial balance, and, in addition, a list of such entries is turned over to the client at the conclusion of the audit with the request that they be approved and entered in the accounting records.
(5) Reclassification entries—entries necessary to properly reflect financial results but not representing misstatements in the financial records of the client.
(6) Supporting schedules—although the term schedule is at times applied to various types of working papers, the preferred usage is to designate a listing of the details or elements comprising the balance in an account at a specified date. Preparation of such a listing is often an essential step in determining the nature of an account.
(7) Analyses—consist of working papers showing the changes that occurred in an account during a given period. By analyzing an account, the auditors determine its nature and contents.
(8) Reconciliations—working papers that prove the relationship between two amounts obtained from different sources.
(9) Computational working papers—used to verify such data as interest expense, income taxes, and earnings per share.
(10) Corroborating documents—working papers that provide support for specific representations made in the financial statements, such as letters of representations from clients, lawyers
1. Explain what a documentation audit is and the documentation audit cycle. 2. Explain the concept of a business associate under HIPAA. 3. Summarize the privacy standards of HIPAA and ARRA/HITECH regarding business associates. 4. Describe the key elements of a business plan for an independent consultant. 5. Explain the concept of a business associate under HIPAA.
The type, quantity, and content of audit documentation varies with the circumstances of the audit. However, audit documentation typically includes ________. - copies of client records examined by the auditor during the course of the engagement - auditing procedures followed and the testing performed in obtaining audit evidence - auditor's comments concerning the efficiency and competence of client management personnel - evaluation of the efficiency and competence of the audit staff assistants by the partner responsible for the audit
Which of the following is not a category of audit documentation? Multiple Choice Temporary files. Audit administrative files. Current documentation files. Permanent files.
Which of the following is not a category of audit documentation? Multiple Choice Temporary files. Audit administrative files. Current documentation files. Permanent files.
The preparation of audit documentation is an integral part of an auditor’s examination of financial statements. On a recurring engagement, auditors review the audit plans and audit documentation from the prior audit while planning the current audit to determine their usefulness for the current-year work. (1) What records may be included in audit documentation? (2) What factors affect the auditors’ judgment of the type and content of the audit documentation for a particular engagement? （3)What should be included in audit...
What are the examples of " deficiencies in the audit documentation" ?
What are the risks of inadequate audit documentation?
Discuss some of the important features of audit documentation and what are the risks of inadequate audit documentation.
Audit documentation is critical to evidence gathering because: a)It demonstrates that an audit has been conducted b)It demonstrates professional skepticism c)It substitutes for making audit judgments and estimates d)All of the above
Question 17 Which of the following is true regarding audit documentation? (Select the correct answer.) a. Documentation must be in paper form in the audit work papers. b. Audit documentation would identify who prepared the work paper but does not need to identify who reviewed the work paper. c. Audit documentation provides the principal support for the audit opinion expressed by the auditor. d. Auditors document only those significant issues unresolved at the conclusion of the audit. Question 18 Which...