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CMA Intermediate · Corporate Accounting and Auditing · Brief Introduction to Auditing Standards

According to SA 200, which statement about documenting the achievement of individual objectives under the SAs is correct?

Separate documentation, such as a checklist, that each individual objective was achieved is unnecessary. But documenting a failure to achieve an objective is useful, because it helps the auditor evaluate whether that failure prevented achieving the auditor's overall objectives.

  1. AThe auditor must separately document through a checklist that every individual objective has been achieved
  2. BThe auditor need not document separately that individual objectives are achieved, but documenting a failure to achieve an objective helps evaluate whether the overall objectives were preventedCorrect
  3. CNo documentation is ever required about failure to achieve an objective
  4. DDocumentation is required only for objectives in SA 200 and not for other SAs

Explanation

SA 200 says it is unnecessary to document separately, as in a checklist, that individual objectives have been achieved. However, documenting a failure to achieve an objective assists the auditor in evaluating whether the failure prevented achieving the overall objectives. Option A states the opposite.

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