What are the 5 purposes of audit documentation?
Nature and Purposes of Audit Documentation
Assisting the engagement team to plan and perform the audit.
Enabling the engagement team to be accountable for its work.
Retaining a record of matters of continuing significance to future audits. legal, regulatory or other requirements..
What is an example of audit documentation?
Examples of audit documentation include memoranda, confirmations, correspondence, schedules, audit programs, and letters of representation.
Audit documentation may be in the form of paper, electronic files, or other media..
What is audit documentation in simple words?
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 ..
What is the audit documentation?
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..
What is the proper audit documentation?
Audit documentation should be prepared in sufficient detail to provide a clear understanding of its purpose, source, and the conclusions reached.
Also, the documentation should be appropriately organized to provide a clear link to the significant findings or issues..
What should audit documentation include?
auditing is an examination of accounting records undertaken with a view to establish whether they correctly and completely reflect the transactions to which they relate.
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Why audit documentation is important?
Audit documentation : Facilitates the planning, performance, and supervision of the engagement. provides the reviewer with written documentation of the evidence supporting the auditor's significant conclusions..
Audit Documentation: The Steps of Conducting an Audit Continued
1Receive vague audit assignment.
2) Gather information about audit subject.
3) Determine audit criteria.
4) Break the universe into pieces.
5) Identify inherent risks.
6) Refine audit objective and sub-objectives.
7) Identify controls and assess control risk.
8) Choose methodologies.- Audit documentation should be sufficient to show that standards of fieldwork have been observed as follows: The work has been adequately planned and supervised.
A sufficient understanding of internal control has been obtained to plan the audit and to determine the nature, timing, and extent of tests to be performed. - Audit Plan
. 10 The auditor should develop and document an audit plan that includes a description of: The planned nature, timing, and extent of the risk assessment procedures; The planned nature, timing, and extent of tests of controls and substantive procedures;12 and. - Firms should obtain the necessary counsel to confirm that all applicable federal, state, local and international regulatory requirements are met.
General guidelines are as follows: Audits, reviews and compilations (financial statements and workpapers) – 7 year.
