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CA Intermediate · Auditing and Ethics · Audit Documentation

During the audit of Kavya Textiles Ltd, the engagement team at Rao & Associates finishes the audit and signs the auditor's report on 20 May. The engagement partner asks the senior when the final audit file must be assembled. As per SA 230, what is the correct response?

The final audit file should be assembled within 60 days after the date of the auditor's report. SA 230 requires timely completion of file assembly, and the 60-day period counted from the report date is the benchmark. It is not counted from the financial year-end.

  1. AWithin 60 days after the date of the auditor's reportCorrect
  2. BWithin 30 days after the date of the auditor's report
  3. COn the date of the auditor's report, without any further time
  4. DWithin 60 days after the end of the financial year

Explanation

SA 230 requires the auditor to assemble the audit documentation in an audit file and complete the administrative process of assembling the final audit file on a timely basis after the date of the auditor's report. The ICAI guidance, via SQC 1 and SA 230, treats a period of not more than 60 days from the date of the auditor's report as appropriate. The 30-day and financial-year options use the wrong period or the wrong starting point.

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