This standard deals with the responsibilities of the auditor in terms of preparing audit docu-mentation for an audit of financial statements. Although the title of this ISA may sound fairly innocuous, the concept of audit evidence; enabling effective review, including quality control are vital and necessary features of any audit. This has been demonstrated in a recent well-publicised court case involving auditors.

Audit documentation that meets the requirements of this ISA provides the evidence of the basis of the auditor’s conclusions and evidence that the work performed was planned and performed in accordance with the ISAs. [ISA230.2]

Audit documents must record the audit procedures performed and are commonly referred to as ‘working papers’. Audit documentation must be prepared on a timely basis and in such a way that allows an experienced auditor, with no previous connection to the audit assignment, to understand the nature, timing and extent of audit procedures performed. In addition, the documentation must also ensure that an experienced auditor, with no previous connection to the audit assignment, is able to understand the results of the audit procedures and the audit evidence obtained as a result of those procedures, together with being able to understand the significant matters arising during the course of the audit and the conclusions reached therefrom.

Preparing sufficient and appropriate audit documentation on a timely basis will ...

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