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CS Professional · Compliance Management, Audit and Due Diligence · Audit Process and Documentation

After signing the auditor's report on the financial statements of Sundaram Textiles Ltd, the engagement partner asks the team to assemble the final audit file. The team plans to sort and cross-reference working papers, discard superseded drafts and sign off the file-assembly completion checklist. Which statement is correct as per SA 230?

Sorting, cross-referencing, discarding superseded documentation and signing off file-assembly checklists after the report date are administrative changes that SA 230 allows during final file assembly. They involve no new audit procedures and no new conclusions, so no re-performance or audit committee consent is needed.

  1. AThese are administrative changes that are permitted during final assembly, as they involve no new audit procedures or new conclusionsCorrect
  2. BThese changes are not permitted once the auditor's report is signed
  3. CThese changes require the auditor to re-perform the related audit procedures
  4. DThese changes can be made only with the written consent of the audit committee

Explanation

SA 230 states that completing the assembly of the final audit file after the date of the auditor's report is an administrative process. Sorting, collating, cross-referencing, discarding superseded documentation and signing off checklists are listed examples of permitted administrative changes. No new procedures or conclusions are involved, so re-performance or consent is not needed.

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