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

According to the explanatory material in SA 200, how should the auditor treat the documentation of whether individual objectives in the SAs have been achieved?

The auditor need not separately document, such as in a checklist, that each individual objective was achieved. However, documenting a failure to achieve an objective is useful, because it assists the evaluation of whether the failure prevented the overall objectives of the auditor from being achieved.

  1. AA separate checklist confirming each objective has been achieved is mandatory in every audit.
  2. BIt is unnecessary to document separately that individual objectives have been achieved, but a failure to achieve an objective should be documented.Correct
  3. CDocumentation is needed only when all objectives are achieved, not when one is failed.
  4. DNo documentation is needed for either achievement or failure, as the auditor's report is sufficient.

Explanation

SA 200 states that audit documentation meeting SA 230 and the other SAs provides evidence of the basis for the auditor's conclusion. The auditor need not document separately, for example in a checklist, that each objective was achieved. Documenting a failure helps the auditor evaluate whether it prevented the overall objectives from being achieved. The checklist option is wrong because the text says it is unnecessary.

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