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Higher National Diploma in Accountancy - Final Year
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Advanced Auditing & Assurance - Lecturer Mr.T. Sivasenthinathan Page 1
Handout - 04
AUDIT DOCUMANTATION
SLAUS 230
Introduction
Documentation means the working papers prepared by and for obtain and retained by the auditor in
connection with a performance of audit.
Purpose of Audit Documentation
1. Primary Purpose - Evidence for audit report
2. Additional - It is tools for Audit works auditor
Document Includes:-
Document Includes
Document Prepared by auditor Document prepared by Document prepared by
And held by auditor the client and held by auditor 3
rd
party and held by auditor
Eg:Audit plan, Audit program Eg: Financial statement, account Eg:bank conformation letter
Results of analytical review schedule, management representation copies of loan agreement
Lawyers conformation,
debtors conformation
The masters, the auditor should record in working papers.
I. Planning information of the audit.
II. Nature, timing and extent of audit procedures preformed.
III. Result of the audit procedures performed.
IV. Auditor conclusion drawn form the audit evidence obtained.
V. In areas involving difficult question of principal or judgment working papers will record the relevant
fact.
The masters effecting form & content of working papers.
I. Nature of engagement
II. The form of the audit report
III. Nature and complexity of business.
IV. Nature & condition of accounting and internal control
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V. The need in the particular circumstance for direction, supervision and review of work performed, by
assistant.
VI. Specific audit methodology and technology use in the course of the audit.
The masters normally included in working paper.
I. Information regarding legal and organizational structure of the entity.
II. Extract or copies of important legal documents.
III. Information regarding the industry economic environment and legal environment.
IV. Evidence of planning process including audit programme.
V. Evidence of auditor’s consideration of work of the final account and conclusion reached.
VI. Evidence of inherent and control risk assessment
VII. Analysis of significant ratio &trends
VIII. Evidence that work performed by assistant was supervised and reviewed.
IX. Copies of communication with other auditors, expert and 3
rd
party discuss with entity.
X. Letters of representation received form entity.
XI. Copies of financial statement audited.
AUDIT FILE
Audit File
Permanent File Temporary file
The maters shown in the audit working papers could be included in the permanent file & current file.
Permanent audit file.
Permanent file contains documents of continuing important with will be required for future audit mail
objective of maintaining permanent file is to provide back round information of the entity to audit staff the
permanent file should be updated. In considering the changes that have been taken.
Following matters may be included in the permanent file.
I. Article of association
II. Copies of important documents.
Eg: - Copy of the letter of engagement, Copy of agreement 3
rd
party.
III. For verification of assets copies of the little deeds.
IV. Address of the registered office of the entity including location of branches, factories, marketing
centers etc.
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Higher National Diploma in Accountancy - Final Year
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Advanced Auditing & Assurance - Lecturer Mr.T. Sivasenthinathan Page 3
V. An organization chart of the entity.
VI. List of books of other records.
VII. Nature of internal control & internal check that are implemented for execution of transaction
recording them.
VIII. Copies of the letters sent to silent requesting for direct conformation to auditor at this request.
Eg: - bank balance conformation.
Auditors to be implemented Audit test
Description of fundamental principal applying and include provision for depreciation of budget of
budgetary con
A copy an audit program.
Current Audit file
This is maintained with a basic objective of recording the ways in which the audit in carried out the current
file contains matter pertaining to the current year’s audit.
The current audit file includes the following
I. Copy of the trial balance for the year with references the final account
II. Certified copy of the account being audited.
III. A copy and audit program with a list of work carried out by audit staff along with their acknowledge
IV. Audit quarries which unsettled and not responded
V. Audit work that can be referred to auditor for his attention by the audit staff.
VI. The certification that received for completion of Statement from client
VII. A record of the minutes
VIII. Details of evidence collected in vouching
IX. Evidence collected for verification of assets & liability
X. A schedule for each item in profit & loss act
XI. Copies of the letter of engagement &management represent
XII. Details of internal control observe during the audit
XIII. A schedule for important statistics.

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Higher National Diploma in Accountancy - Final Year 2018 Handout - 04 AUDIT DOCUMANTATION SLAUS – 230 Introduction Documentation means the working papers prepared by and for obtain and retained by the auditor in connection with a performance of audit. Purpose of Audit Documentation 1. Primary Purpose 2. Additional - Evidence for audit report It is tools for Audit works auditor Document Includes:Document Includes Document Prepared by auditor Document prepared by And held by auditor the client and held by auditor Eg:Audit plan, Audit program Eg: Financial statement, account Results of analytical review schedule, management representation Document prepared by 3 party and held by auditor Eg:bank conformation letter copies of loan agreement Lawyers conformation, debtors conformation rd The masters, the auditor should record in working papers. I. II. III. IV. V. Planning information of the audit. Nature, timing and extent of audit procedures preformed. Result of the audit procedures performed. Auditor conclusion drawn form the audit evidence obtained. In areas involving difficult question of principal or judgment working papers will record the relevant fact. The masters effecting form & content of working papers. I. Nature of engagement II. The form of the audit report III. Nature and complexity of business. IV. Nature & condition of accounting and internal control Advanced Auditing & Assurance - Lecturer Mr.T. Sivasenthinathan Page 1 Higher National Diploma in Accountancy - Final Year 2018 V. VI. The need in the particular circumstance for direction, supervision and review of work performed, by assistant. Specific audit methodology and technology use in the course of the audit. The masters normally included in working paper. I. Information regarding legal and organizational structure of the entity. II. Extract or copies of important legal documents. III. Information regarding the industry economic environment and legal environment. IV. Evidence of planning process including audit programme. V. Evidence of auditor’s consideration of work of the final account and conclusion reached. VI. Evidence of inherent and control risk assessment VII. Analysis of significant ratio &trends VIII. Evidence that work performed by assistant was supervised and reviewed. IX. Copies of communication with other auditors, expert and 3rd party discuss with entity. X. Letters of representation received form entity. XI. Copies of financial statement audited. AUDIT FILE Audit File Permanent File Temporary file The maters shown in the audit working papers could be included in the permanent file & current file. Permanent audit file. Permanent file contains documents of continuing important with will be required for future audit mail objective of maintaining permanent file is to provide back round information of the entity to audit staff the permanent file should be updated. In considering the changes that have been taken. Following matters may be included in the permanent file. I. Article of association II. Copies of important documents. Eg: - Copy of the letter of engagement, Copy of agreement 3rd party. III. For verification of assets – copies of the little deeds. IV. Address of the registered office of the entity including location of branches, factories, marketing centers etc. Advanced Auditing & Assurance - Lecturer Mr.T. Sivasenthinathan Page 2 Higher National Diploma in Accountancy - Final Year 2018 V. VI. VII. VIII. An organization chart of the entity. List of books of other records. Nature of internal control & internal check that are implemented for execution of transaction recording them. Copies of the letters sent to silent requesting for direct conformation to auditor at this request. Eg: - bank balance conformation. Auditors to be implemented – Audit test Description of fundamental principal applying and include provision for depreciation of budget of budgetary con A copy an audit program. Current Audit file This is maintained with a basic objective of recording the ways in which the audit in carried out the current file contains matter pertaining to the current year’s audit. The current audit file includes the following I. Copy of the trial balance for the year with references the final account II. Certified copy of the account being audited. III. A copy and audit program with a list of work carried out by audit staff along with their acknowledge IV. Audit quarries which unsettled and not responded V. Audit work that can be referred to auditor for his attention by the audit staff. VI. The certification that received for completion of Statement from client VII. A record of the minutes VIII. Details of evidence collected in vouching IX. Evidence collected for verification of assets & liability X. A schedule for each item in profit & loss act XI. Copies of the letter of engagement &management represent XII. Details of internal control observe during the audit XIII. A schedule for important statistics. Advanced Auditing & Assurance - Lecturer Mr.T. Sivasenthinathan Page 3 Name: Description: ...
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