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CA Intermediate · Auditing and Ethics · Audit Documentation

After signing the audit report of Rudra Pharma Ltd on 20 May 2026 and assembling the file, the auditor, CA Nisha, discovers on 10 July 2026 that one bank confirmation reply was filed in the wrong folder and was never placed on the file. She has already obtained and evaluated the reply during the audit and it supports the balance. Which is the correct treatment under SA 230?

The auditor should add the reply as additional documentation and record when and by whom it was added and reviewed, along with the reason. Back-dating, deleting earlier papers or ignoring the omission would contradict SA 230, which allows documented additions after file assembly.

  1. AAdd the reply to the file as additional documentation, recording the date and by whom it was made and reviewed, and the reason for the additionCorrect
  2. BReplace the existing file with a new file bearing a back-dated assembly date of 20 May 2026
  3. CDo nothing, since the file cannot be touched after the 60-day period
  4. DRemove the earlier working papers that referred to the missing reply and re-perform the audit

Explanation

After assembly, SA 230 permits adding documentation where circumstances require, but the auditor must record the specific reasons, when and by whom the changes were made, and who reviewed them. Back-dating is improper. Deleting or discarding documentation is not allowed before the end of the retention period, and the file is not frozen against permitted additions.

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