- 3 Marks
Question
Audit evidence may come in many forms. For instance, enquiries may be verbal, while confirmations may be in written form. Regardless of the form of audit evidence they obtain, auditors need to document their procedures. The process of documenting audit evidence is known as audit documentation.
Required:
Explain THREE (3) purposes of audit documentation in line with ISA 230: Audit Documentation.
(3 marks)
Answer
- Provides a record for the auditor’s report – It ensures that there is sufficient and appropriate evidence of the basis on which the auditor’s report is made.
- Evidence of compliance with ISAs and regulations – It provides proof that the audit was conducted according to International Standards on Auditing (ISA) and applicable legal frameworks.
- Facilitates audit review – It allows supervisors or others reviewing the audit to understand the work performed and the evidence collected to form the auditor’s opinion.
- Tags: Audit Documentation, Audit evidence, Audit Procedures, ISA 230
- Level: Level 2
- Topic: Audit and Assurance Evidence
- Series: NOV 2021
- Uploader: Theophilus