Audit Documentation
Domain 6 tests SA 230: what must be on the audit file, in what form, and by when.
Purpose and content
Documentation must let an experienced auditor with no previous connection with the audit understand the nature, timing and extent of procedures performed, the results, the significant matters and the conclusions drawn. It should record who performed the work, when, and who reviewed it. Significant judgements and how they were resolved must be documented.
Permanent and current files
The permanent file holds constitutional documents, accounting policies, long-term contracts and organisation charts. The current file holds the audit programme, working papers, confirmations, management representations, drafts and the final report.
Timing and retention
The final audit file is assembled within 60 days of the date of the auditor's report. After that date files must not be deleted; if additions are needed, the reason, the person making them and the date must be documented. SA 230 requires retention ordinarily not shorter than five years from the date of the auditor's report.
Worked example
On 10 July, 70 days after the report date of 1 May, the partner wants to remove a superseded draft and file a corrected version. Reasoning: assembly closed at 60 days, that is 30 June; removal of existing documentation is prohibited. The correction may be added as a new, dated note explaining why it was made, but the original paper stays on file.
Traps
- Filing only the final financial statements and the audit report.
- Relying on oral client explanations without a written record.
- Back-dating working papers or deleting superseded drafts.
- Omitting documentation of the review and of significant judgements.