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

An audit team for Himalaya Foods Pvt Ltd consists mostly of first-year audit assistants. The partner is deciding how detailed the planning documentation should be, provided SA 230 requirements are met. Which view fits SA 315?

A team made up of less experienced individuals may require more detailed documentation to help it obtain an appropriate understanding of the entity. SA 315 says the extent of documentation may reflect team experience and capabilities, provided SA 230 requirements are always met.

  1. ADocumentation extent is fixed by entity turnover alone
  2. BSuch a team may require more detailed documentation to help it obtain an appropriate understanding of the entity than a team of experienced individualsCorrect
  3. CLess experienced teams may document less, as seniors will review later
  4. DTeam experience has no bearing on the extent of documentation

Explanation

SA 315 states the extent of documentation may reflect the experience and capabilities of team members, and a team of less experienced individuals may need more detailed documentation. The option on turnover alone ignores this factor, and the 'document less' view reverses the standard.

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