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

An audit team for Himalaya Foods Pvt. Ltd. has mostly junior members with limited experience. The partner wonders how this affects the extent of documentation of the understanding of the entity, provided SA 230 requirements are met. Which view is consistent with SA 315 (as reproduced)?

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

  1. ALess experienced teams must always document less, to avoid errors
  2. BExperience of the team has no bearing on the extent of documentation
  3. CA team of less experienced individuals may require more detailed documentation to help it obtain an appropriate understanding of the entityCorrect
  4. DOnly the engagement partner needs to document the understanding

Explanation

SA 315 notes that the extent of documentation may reflect the experience and capabilities of the team members. A team of less experienced individuals may need more detailed documentation than one with experienced people. The distractor claiming less documentation reverses this.

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