Documentation

Question 1

What is documentation in the form of?

Answer 1

Working papers

Question 2

Should documentation be maintained for all assurance engagements?

Answer 2

Yes

Question 3

Who are working papers prepared by?

Answer 3

Assurance providers

Question 4

What should working papers be sufficiently complete and detailed to do?

Answer 4

1. Support conclusions
2. Provide overall understanding of work undertaken
3. Evidence compliance with relevant laws/regulations/standards

Question 5

Working papers provide a record of:

Answer 5

Engagement planning
Engagement performance

Supervision and review

Necessary evidence obtained

Quality control procedures

Question 6

Should assurance providers use their professional judgement when deciding what to document?

Answer 6

Yes

Question 7

ISA (UK) 230: Working papers must be…

Answer 7

Sufficient

So that an experienced auditor with no previous connection

Can understand:
Audit work performed
Evidence obtained
Significant matters arising
Conclusions reached

Question 8

Some things working papers can show

Answer 8

Name of client
Reporting date
File reference
Name of preparer/date
Name of reviewer/date
Subject of working paper
Objective
Source of information
Sample size
Work performed
Results and conclusions drawn
Analysis of error

Question 9

Two types of audit file

Answer 9

Permanent audit file

Current audit file

Question 10

Permanent audit file

Answer 10

Matters of a permanent or semi-permanent nature

Suitably indexed

Prepared at the commencement of the initial audit for client

Reviewed and updated at the commencement of subsequent audits for the same client

Question 11

Current audit file

Answer 11

Relate primarily to the set of accounts or statements being audited

Suitably indexed

Prepared for the client on each occasion and audit is performed

Question 12

Is safe custody of working papers important

Answer 12

Yes

Question 13

Must assurance work be kept confidential?

Answer 13

Yes

Question 14

How to protect paper documents?

Answer 14

Secure location

Question 15

How long should working papers be held?

Answer 15

It’s a matter of judgement

Question 16

What does ICAEW recommend about holding working papers?

Answer 16

All firms required to have a document retention policy

Question 17

How long should registered auditors keep all audit WPs according to auditing standards?

Answer 17

At least 6 years from the end of the accounting period to which they relate

Question 18

Who do WPs belong to?

Answer 18

The assurance provider

Question 19

Three points about WP confidentiality

Answer 19

1. Must be kept confidential
2. Can be shown to the client at their discretion
3. Can’t be shown to 3P without client’s permission

Question 20

Who belongs any assurance reports created as output to an assignment?

Answer 20

The client once issued