SA-230 Audit Documentation (Revised)
Here in this article I have explained about AAS-3 or SA-230 Audit Documentation. What is documentation? What is the importance of working papers in audit? What are the provisions or guideline of ICAI relating to this standard? All are discussed in detail.
At the time of issuing audit report supportive evidences are required to obtain and that is called audit documentation. Audit documentation can be obtained during the audit or after completion of audit but before drafting audit report. The Institute of Chartered Accountants of India which is controlling authority in the field of auditing has issued auditing and assurance standard (SA 230) Audit Documentation to set uniformity in audit area. This standard is effective from April 1, 2009. What is documentation?
Documentation are working papers which is prepared by the auditor for audit purpose and for his own use and not for client so that in future , if any case is filed against auditor for negligence of his duty then it can be provided as proof to other parties. It is maintained at three stage of audit work; audit planning, audit implementation and audit reporting. It should be provided that work of audit has been carried with planning and this can be proved by audit program and planning level working papers. Types of working papers or file
Permanent audit file
It includes permanent information regards to the client or information which is not in nature to change year to year. This permanent information should be reviewed by auditor every year before starting work of audit for current year and same should be ask to client if any change is taken place. Details includes in the permanent audit file can be stated as follow.Current audit file
It includes current year audit information of queries, observations, justifications and confirmation from third parties and management. Current audit file will become helpful for next year audit work. It will include details of work done up to date, done by whom, time taken for completion, what areas are pending to verify?, queries found etc.Importance of audit working file
Provision relating to working papers
This is AAS-3 issued by The Institute of Chartered Accountant of India and exclusively for its members that are chartered accountants to follow while carrying process of audit. That means these AAS (Auditing and Assurance Standard) is for audit purpose and not required to follow by the management of the company nor accounting department because it is not any way relates to accounting principles, methods or compliance.
Under SA-230, if an auditor resigns prior to completion of the audit and without providing an audit report, can the client (via a pre-audit contract) require him to return all confidential information? If the engagement ends without work product, can the client get their documents and confidential information back from the auditor?