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

An audit team for Shivalik Foods Ltd consists mostly of newly qualified members. The engagement partner is deciding on the extent of documentation of the understanding of the entity. Provided SA 230 requirements are always met, which is the position under SA 315?

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

  1. ALess experienced teams require no extra documentation since SA 230 is sufficient
  2. BDocumentation extent is fixed regardless of team experience
  3. CA team of less experienced individuals may require more detailed documentation to help them obtain an appropriate understanding of the entityCorrect
  4. DOnly experienced members may prepare documentation of risk assessment

Explanation

SA 315 says the extent of documentation may reflect the experience and capabilities of team members, and that a less experienced team may need more detailed documentation to understand the entity, provided SA 230 is met. It is not a fixed extent, and it does not restrict who may document.

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