Timely Preparation of Audit Documentation
The auditor shall prepare audit documentation on a timely basis.
Documentation of the Audit Procedures Performed and Audit Evidence Obtained:
Form, Content and Extent of Audit Documentation:
- The auditor shall prepare audit documentation that is sufficient to enable an experienced auditor, having no previous connection with the audit, to understand:
i. The nature, timing and extent of the audit procedures performed to comply with the ISAs and applicable legal and regulatory requirements;
ii. The results of the audit procedures performed, and the audit evidence obtained; and
iii. Significant matters arising during the audit, the conclusions reached thereon, and significant professional judgments made in reaching those conclusions.
- In documenting the nature, timing and extent of audit procedures performed, the auditor shall record:
i. The identifying characteristics of the specific items or matters tested;
ii. Who performed the audit work and the date such work was completed; and
iii. Who reviewed the audit work performed and the date and extent of such review.
- The auditor shall document discussions of significant matters with management, those charged with governance, and others, including the nature of the significant matters discussed and when and with whom the discussions took place.
- If the auditor identified information that is inconsistent with the auditor’s final conclusion regarding a significant matter, the auditor shall document how the auditor addressed the inconsistency.
Departure from a Relevant Requirement:
If, in exceptional circumstances, the auditor judges it necessary to depart from a relevant requirement in an ISA, the auditor shall document how the alternative audit procedures performed achieve the aim of that requirement, and the reasons for the departure.
Matters Arising after the Date of the Auditor’s Report:
If, in exceptional circumstances, the auditor performs new or additional audit procedures or draws new conclusions after the date of the auditor’s report, the auditor shall document:
- The circumstances encountered
- The new or additional audit procedures performed, audit evidence obtained, and conclusions reached, and their effect on the auditor’s report; and
- When and by whom the resulting changes to audit documentation were made and reviewed.
Assembly of the Final Audit File:
- The auditor shall assemble the audit documentation in an audit file and complete the administrative process of assembling the final audit file on a timely basis after the date of the auditor’s report.
- After the assembly of the final audit file has been completed, the auditor shall not delete or discard audit documentation of any nature before the end of its retention period.
- In circumstances other than those envisaged in paragraph 13 where the auditor finds it necessary to modify existing audit documentation or add new audit documentation after the assembly of the final audit file has been completed, the auditor shall, regardless of the nature of the modifications or additions, document:
i. The specific reasons for making them
ii. When and by whom they were made and reviewed.