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CA Intermediate · Auditing and Ethics · Audit Documentation

After the audit report on Narmada Foods Ltd was signed and the file assembled, the auditor, CA Ritu, discovers that a working paper summarising inventory observation contains a typographical error in a quantity total. The error does not affect the audit conclusion. Under SA 230, what is the correct action if she wishes to correct it after file assembly?

The auditor should record the correction as an addition to the file, documenting the specific reasons, who made and reviewed it and when, while keeping the original paper. SA 230 does not permit deleting or discarding documentation after file assembly.

  1. AReplace the original page with a corrected page and destroy the old page, since the error is clerical
  2. BMake the amendment as an addition, documenting the specific reasons, when and by whom made and reviewed, and retain the originalCorrect
  3. CLeave the file unchanged because no document can be touched after the report date under any circumstance
  4. DObtain written approval from the audit committee of the company before changing the working paper

Explanation

SA 230 allows changes after file assembly only if they are administrative or are additions, and the auditor must document the specific reasons, who made and reviewed them and when. Original documents are not to be deleted or discarded. Replacing and destroying the old page breaches the retention requirement.

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