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CA Intermediate · Auditing and Ethics · Audit Documentation

During the audit of Kavya Textiles Ltd, the engagement partner finds that a junior member of the team has left several working papers undated and unsigned, although the conclusions in them are correct. Under SA 230, which of the following best describes the purpose of recording who performed and who reviewed the audit work, along with dates?

Recording who performed and reviewed the work, with dates, lets an experienced auditor having no previous connection with the engagement understand the procedures performed, who did them and when they were reviewed. SA 230 requires this for all work, not only for partner work or regulatory situations.

  1. AIt is needed only if the auditor expects to be summoned by a regulator
  2. BIt enables an experienced auditor with no prior connection to the engagement to understand who performed and reviewed the work and whenCorrect
  3. CIt is required only for the work done by the engagement partner
  4. DIt replaces the need to document the nature, timing and extent of procedures

Explanation

SA 230 requires documentation to record who performed the work and the date of completion, and who reviewed it and the date and extent of review. The purpose is to let an experienced auditor with no previous connection understand the work done. The other options narrow or misstate this requirement; identifying performers never replaces documenting the procedures themselves.

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