CA Intermediate · Auditing and Ethics · Audit Documentation

In the audit of Dhanvi Foods Ltd, the audit team documents a discussion with the CFO about a significant accounting estimate. An article clerk asks what information SA 230 expects to be recorded about the audit procedures performed. Which is correct?

Documentation should record the identifying characteristics of the items or matters tested, who performed the work and when it was completed, and who reviewed it along with the date and extent of review. General statements or results alone do not let an experienced outsider understand the work done.

AOnly the names of reviewers, without the items tested
BOnly the results of procedures, since the nature of procedures is evident from the audit programme
CThe identifying characteristics of the specific items or matters tested, who performed the work and the date completed, and who reviewed it with the date and extent of reviewCorrect
DOnly a general statement that procedures were performed in accordance with Standards on Auditing

Explanation

SA 230 requires documentation of the identifying characteristics of specific items tested, who performed the work and when it was completed, and who reviewed the work, the date and extent of review. A mere general statement or results alone does not enable an experienced auditor with no previous connection to the audit to understand the work.

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