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CA Intermediate · Auditing and Ethics · Audit Documentation

After the audit report on Mehta Foods Pvt Ltd was signed, the auditor discovers that a bank confirmation received before the report date was left unfiled. The auditor files it in the working paper file on the next day, as a clerical matter only, with no change in conclusions. What is the correct documentation response under SA 230?

The auditor may add the document but must record when and by whom the addition was made, the specific reason for it, and who reviewed it. SA 230 permits administrative changes after file assembly, but does not permit backdating or removing earlier documentation.

  1. ARefile it silently and backdate the index to the report date
  2. BDo not add it, because no change to audit documentation is allowed after the report date
  3. CAdd it and document when and by whom it was added, the reason, and who reviewed itCorrect
  4. DReplace the earlier working paper and discard the old version

Explanation

Under SA 230, after the assembly of the final file is complete, changes may be made only in exceptional circumstances, or administrative ones such as filing documents. The auditor must record the specific reasons for the change, and when and by whom it was made and reviewed. Backdating or discarding documents misrepresents the record, and a total prohibition on changes is not what SA 230 says.

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