Question

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 documentation to support auditors’ compliance with generally accepted auditing standards?

Answer 1

1.

Audit documentation is the written record of the basis for the auditor's conclusions that provides the support for the auditor's representations, whether those representations are contained in the auditor's report or otherwise. Audit documentation also facilitates the planning, performance, and supervision of the engagement, and is the basis for the review of the quality of the work

Among other things, 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.

2. Factors affecting the auditors’ judgment of the type and content of the audit documentation for a particular engagement is as below:

- the size and complexity of the entity.

-the nature of the audit procedures to be performed.

-the identified risks of material misstatements.

-the significance of the audit evidence obtained.

-the nature and extent of exceptions identified.

-the need to document a conclusion or the basis for a conclusion not readilydeterminable from the documentation of the work performed or the audit evidenceobtained.

-the audit methodology and tools used.-the extent of judgment involved in performing the work and evaluating the results.

3. Audit documentation to support auditors’ compliance with generally accepted auditing standards:

- Checklist of all the auditing standards

- Documentation of relevent procedure performed

- Docuemtation of alternate procedure performed in case of deviation