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

An audit team for Himalaya Pharma Ltd consists mostly of newly qualified staff, while the team for a similar entity, Nilgiri Remedies Ltd, consists of experienced seniors. The manager proposes that the Himalaya file should contain more detailed documentation of the understanding of the entity, without diluting SA 230 requirements for either team. Which statement is most consistent with SA 315?

SA 315 says documentation extent may reflect team experience, so a less experienced team may need more detailed documentation to understand the entity, while SA 230 requirements must always be met. Experience never removes those requirements, and no single fixed format applies to every audit.

  1. ADetail should be identical, since SA 230 prescribes a fixed format for all audits
  2. BA less experienced team may require more detailed documentation to help it obtain an appropriate understanding of the entity, provided SA 230 requirements are always metCorrect
  3. CAn experienced team need not meet SA 230 requirements because its judgment substitutes for documentation
  4. DOnly the experienced team's file may be incorporated into the overall audit strategy and plan

Explanation

SA 315 says the extent of documentation may reflect the experience and capabilities of team members, and that a team of less experienced individuals may require more detailed documentation, provided SA 230 requirements are always met. The manager's proposal fits this. The claim that experience removes SA 230 requirements is wrong, since those must always be met.

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