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CA Intermediate · Auditing and Ethics · Audit Documentation

After signing the audit report of Narmada Foods Ltd on 25 May, the auditor realises on 10 July that a confirmation received before the report date was never filed in the audit file. No new procedures were performed. The file assembly period under SQM/SA 230 has not yet expired. What is the correct response?

The auditor may add the confirmation because it is an administrative assembly change, but must document the specific reasons, the date and the person who made and reviewed the change. Silent insertion or discarding and recreating the file would be improper under SA 230.

  1. AAdd the confirmation to the file, and document when and by whom the addition was made and who reviewed it, with the reasonCorrect
  2. BLeave it out because the audit report is already signed
  3. CDestroy the earlier file and prepare a new one dated 10 July
  4. DAdd the confirmation silently so the file appears complete as of 25 May

Explanation

Under SA 230, after the date of the auditor's report, changes to the file during assembly that are administrative in nature are permitted, for example filing documents received before the report date. The auditor must document who made the changes, when, and who reviewed them. Silent additions or recreating the file would mislead and are improper.

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