CA Intermediate · Auditing and Ethics · Audit Documentation
CA Rohit is auditing Dhanvi Foods Ltd. Midway through the audit, the engagement team receives an e-mail from the client's lawyer on a pending dispute. Rohit prints it and places it in the file. Which of the following best reflects the documentation requirement under SA 230 regarding the identification of the work performed on this item?
The auditor should record the identifying characteristics of the item examined, such as the date and reference of the lawyer's communication. SA 230 applies this to all procedures, so the work can be traced, and it does not rely only on a copy being in the file.
- ADocument the identifying characteristics of the specific item tested, such as the date and reference of the lawyer's communicationCorrect
- BDocument only the total number of legal communications received during the year
- CDocumentation of identifying characteristics is required only for sampling tests, not for other procedures
- DIdentifying characteristics need not be recorded when a copy of the document is in the file
Explanation
SA 230 requires the auditor to record the identifying characteristics of the specific items or matters tested, as these depend on the nature of the procedure, e.g. date and reference of a letter. This allows the work to be traced and reviewed. It is not confined to sampling, and keeping a copy does not remove the requirement for the file to show what was examined, who did it and when.
Did you get it right without looking?
One question tells you little. A timed set on Audit Documentation shows your real accuracy, how long you take and where you lose marks.
More Audit Documentation questions
- A new audit assistant at Bhatt & Co. asks why the firm insists on documenting significant matters and professional judgements on the audit o…
- After the audit report of Sundaram Pharma Ltd was signed on 10 June 2026 and the file was assembled, the audit senior notices that a bank co…
- Partner CA Reena of Reena & Co. is asked by the management of Delta Foods Ltd to hand over the audit working papers of the previous year, as…
- While auditing Sahyadri Pharma Ltd, the auditor found, after signing the audit report dated 28 May, that a working paper on inventory observ…
- After the audit report on Mehta Foods Pvt Ltd was signed, the auditor discovers that a bank confirmation received before the report date was…
- Auditor Iyer discovers during the audit of Anand Motors Ltd. that the client management gave a representation about related party transactio…