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CA Intermediate · Auditing and Ethics · Audit Documentation

During the statutory audit of Kaveri Textiles Ltd, the audit senior, Meera, prepared a working paper on debtors' confirmations in May. The engagement partner reviewed it in June. Which statement best describes the purpose of recording who performed the work and who reviewed it, with dates, as required by SA 230?

Recording the preparer, reviewer and dates lets an experienced auditor with no previous connection to the engagement understand who did and who reviewed the work and when. SA 230 requires this; it does not substitute for documenting procedures or for any quality review of the engagement.

  1. AIt enables an experienced auditor with no prior connection to the engagement to understand who performed and reviewed the work and whenCorrect
  2. BIt allows the client to verify the fees charged for each team member
  3. CIt replaces the need for an engagement quality review
  4. DIt removes 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 completed, and who reviewed it and the date and extent of review. This lets an experienced auditor with no connection to the engagement understand the work done. It does not replace other documentation or quality review.

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