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

Anita Verma, a partner, staffs the audit of Deccan Pharma Ltd, a complex entity, mostly with junior associates with limited experience. She asks how team experience affects documentation, assuming SA 230 requirements are always met. Which view aligns with SA 315 guidance?

A team of less experienced individuals may require more detailed documentation to help them obtain an appropriate understanding of the entity, provided the requirements of SA 230 are always met. Team experience and capabilities may therefore influence the extent of documentation, but never reduce it below SA 230.

  1. AA team of less experienced individuals may require more detailed documentation to help them obtain an appropriate understanding of the entityCorrect
  2. BLess experienced teams may reduce documentation below SA 230 requirements
  3. CDocumentation extent depends only on the audit fee
  4. DExperience of the team has no bearing on the extent of documentation

Explanation

The guidance states that the extent of documentation may reflect team experience and capabilities. Provided SA 230 is always met, a less experienced team may need more detailed documentation to understand the entity. Reducing documentation below SA 230 is wrong since those requirements must always be met.

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