Auditing and Ethics · Audit Evidence

Audit Documentation under SA 230

Updated 4 October 2026 · Fact-checked

Audit documentation is the record of audit procedures performed, relevant audit evidence obtained and conclusions reached, as required by SA 230. It is kept in working papers and the audit file. To answer questions, state the purpose, content, ownership, confidentiality and retention, and give a clear example.

Understand Audit Documentation under SA 230

Audit documentation is the written record of what the auditor did, what evidence was obtained and what conclusions were drawn. It is also called working papers. It can be on paper, in electronic form or on other media.

Think of it as proof of your work. Someone who has no link with the audit, such as an experienced auditor, should be able to understand from the file the nature, timing and extent of procedures performed, the results and evidence obtained, and the significant matters and judgments made. That test is central to SA 230.

Documentation has three main purposes:

It provides evidence of the basis for the auditor's report, and that the audit was planned and performed in line with SAs and applicable legal and regulatory requirements.
It assists the engagement team to plan, perform, direct, supervise and review the audit work.
It enables accountability for the work, retains matters of continuing significance for future audits, and supports quality control reviews and inspections.

Working papers belong to the auditor, who owns them. But the auditor must keep them confidential, and clients cannot demand them as of right. They are not a substitute for the client's accounting records. The auditor may at their discretion share portions or extracts with the client, if this does not undermine the independence or validity of the work.

SA 230 requires the final audit file to be assembled on a timely basis after the date of the auditor's report. The 60-day period for assembly comes from the firm's quality management standard (SQM 1), not from SA 230 itself. Under SQM 1 and SA 230, the retention period for audit engagements is not shorter than 8 years from the date of the auditor's report, or the period required by law if longer. Check the wording of your question.

Key rules to remember

Purpose of documentation: Evidence of basis for report and of compliance with SAs + aid to planning, performance, direction, supervision and review + accountability, continuing significance and quality reviews; Use these three heads as the skeleton of any 'purpose' answer.
Experienced auditor test: Experienced auditor with no previous connection must understand: nature, timing, extent of procedures; results and evidence; significant matters and judgments; SA 230 uses this as the standard for how much to document.
Documentation of specific items: Record: who performed the work and when; who reviewed it and when; identifying characteristics of items tested; Examples of identifying characteristics: invoice number, date, amount, voucher number.
Assembly of final file: SA 230: assemble the final audit file on a timely basis after the date of the auditor's report. SQM 1: within 60 days of that date; Assembly is an administrative process. No new audit procedures or new conclusions are made. The 60 days is from SQM 1, not SA 230.
Retention period: Retain for a period not shorter than 8 years from the date of the auditor's report; Under SQM 1 and SA 230. Retain longer if law requires.
Changes after file assembly: Exceptional circumstances only: document reasons, who made and reviewed changes, and when; Do not delete or discard documentation after assembly before retention ends.

How to solve Audit Documentation under SA 230 questions

Use this method for any theory or case question on audit documentation.

1Read the question and identify which angle is asked: meaning, purpose, form, content, ownership, confidentiality, assembly or retention.
2Define audit documentation in one line in SA 230 terms: record of procedures, evidence and conclusions.
3List the points required by the angle. For purpose, give the three heads. For content, give nature, timing, extent, results, significant matters.
4Add any condition or time limit exactly: SA 230 requires timely assembly, SQM 1 sets 60 days from the date of the auditor's report, and retention is not shorter than 8 years from that date.
5For case questions, apply the rule to the facts and state a clear conclusion on what the auditor should do.
6Give a short example, such as a bank confirmation or inventory count sheet, to show understanding.
7Close with one line linking back to the question, for instance that the auditor should keep the file confidential unless law or professional duty permits disclosure.

Quickest way: Three-heads and two-numbers method

When to use it: Use when you have little time or when the MCQ asks about SA 230 facts.

Recall the three purposes: (1) basis for report and evidence of compliance; (2) aid to plan, perform, direct, supervise and review; (3) accountability, continuing significance and quality reviews or inspections.
Recall the two numbers: 60 days for assembly (SQM 1; SA 230 itself says timely) and not less than 8 years for retention.
For MCQs, eliminate options that say the client owns the working papers or that the file can be changed freely after assembly.
Eliminate options saying documentation is a substitute for accounting records.
In written answers, use headings and bullets: Meaning, Purpose, Content, Ownership, Retention. Each heading earns step marks.

Common mistakes in Audit Documentation under SA 230

Saying the client owns the working papers.
Students think the client paid for the audit, so the papers are theirs.
Fix: Remember that the auditor owns the working papers. The auditor may share extracts at discretion, but the client has no right to them.
Mixing up the 60-day and 8-year figures, or crediting 60 days to SA 230.
Both are time limits connected to the date of the auditor's report, and they are often quoted together.
Fix: Link 60 days (from SQM 1; SA 230 says timely) with assembling the final file and 8 years with keeping it. Write both with the words 'from the date of the auditor's report'.
Treating working papers as a copy of the client's books.
Students think documentation means copying records.
Fix: Working papers record the auditor's own work, evidence and conclusions. Copies of client records are included only where they support that work.
Assuming the auditor can tidy or delete papers after assembly.
Assembly sounds like a final clean-up.
Fix: After assembly, do not delete or discard papers before retention ends. Any change in exceptional cases must record reasons, who made it and who reviewed it.
Confusing permanent file with current file.
Both contain client information and look alike.
Fix: The permanent file holds information of continuing relevance across years, such as constitution documents. The current file holds the work of the current period, such as the audit programme and results.

Worked examples

Example 1

State the purposes of audit documentation under SA 230. (4 marks)

Show the solution

Define: audit documentation is the record of audit procedures performed, relevant audit evidence obtained and conclusions reached.
Purpose 1: It provides evidence of the auditor's basis for the audit report.
Purpose 1 (continued): It also shows that the audit was planned and performed in accordance with SAs and applicable legal and regulatory requirements.
Purpose 2: It assists the engagement team to plan and perform the audit, and helps those responsible to direct, supervise and review the work.
Purpose 3: It enables the team to be accountable for its work, retains matters of continuing significance for future audits, and supports quality control reviews and external inspections.

Answer: Audit documentation has three purposes: (1) evidence of the basis for the report and of compliance with SAs and law; (2) aid to planning, performance, direction, supervision and review; (3) accountability, retention of matters of continuing significance, and support for quality control reviews and inspections.

Example 2

CA Rao completed the audit of Sunrise Ltd. and signed his report on 10 June 2027. The client's CFO asks for the full audit file to be handed over, saying the company has paid fees. Advise CA Rao on ownership, the latest date for assembling the file under SQM 1 and the minimum retention period. (5 marks)

Show the solution

Provision: working papers are the property of the auditor. The auditor may, at discretion, make portions or extracts available to the client, if this does not undermine the independence or validity of the work.
Facts: the CFO asks for the full file only because fees have been paid. Payment of fees does not transfer ownership.
Conclusion on ownership: CA Rao need not hand over the full file. He must also keep it confidential unless law or professional duty requires disclosure.
Assembly: SA 230 requires timely assembly, and SQM 1 sets 60 days from the date of the auditor's report. From 10 June, 20 days take us to 30 June. Adding 31 days of July gives 51 days. Adding 9 more days gives 9 August 2027.
Retention: not shorter than 8 years from 10 June 2027, so until at least 10 June 2035.

Answer: CA Rao owns the file and need not give it all to the CFO, though he may share extracts at his discretion. He should assemble it by 9 August 2027 (60 days under SQM 1) and retain it until at least 10 June 2035.

Exam tips

Learn the two numbers (60 days, 8 years), the phrase 'from the date of the auditor's report', and that 60 days comes from SQM 1 while SA 230 says timely. MCQs test them directly.
In theory answers, use the order: meaning, purpose, content, ownership, retention. It matches how marks are given.
For case questions, name the party who owns the file (the auditor) and state the conclusion clearly before the reasoning.
Mention the experienced auditor test when asked how much to document. It is a favourite point.
Use examples such as inventory count sheets, confirmations and review notes. They show that you understand what a working paper is.

Practice questions from Audit Evidence

Audit Documentation under SA 230 in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Audit Documentation under SA 230: frequently asked questions

What is SA 230 in simple words?

SA 230 sets out what the auditor must record about the audit and how to keep it. It says the record must be enough for an experienced auditor to understand the work done, evidence obtained and conclusions reached.

Who owns audit working papers?

The auditor owns them. The client cannot demand them as a right, though the auditor may share extracts at discretion if independence and validity of the work are not undermined. The auditor must keep them confidential.

What is the difference between permanent audit file and current audit file?

The permanent file holds information of continuing importance over several years, such as constitution documents and agreements. The current file holds the work for the current audit period, such as the audit programme, tests and conclusions.

How long must working papers be retained?

Retain them for a period not shorter than 8 years from the date of the auditor's report. Keep them longer if law or regulation requires it.