AA – L2 – SA – Q3.5 – Audit Documentation Reasons

True/false on reasons for audit documentation.

Question

Regarding the reasons for preparing audit documentation, select whether each of the following statements are true or false.

To retain a record of matters of continuing significance to future audits
A True
B False
To provide evidence of audit work carried out in the event of a legal dispute
C True
D False
To enable an experienced auditor to carry out engagement quality reviews
E True
F False

Answer

A, C, E

Explanation:

Audit documentation retains records for future audits (A, True), as it includes matters like accounting policies.
It provides evidence for legal disputes (C, True), supporting the auditor’s work.
It enables quality reviews by experienced auditors (E, True), ensuring compliance with standards. All statements are true, so A, C, E are correct.

Tags: Audit Documentation, Evidence, ICAG, Quality Review
Level: Level 2

Topic: Audit and Assurance Evidence

Uploader: Salamat Hamid