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CA Intermediate · Auditing and Ethics · Audit Documentation

In the audit of Nilgiri Pharma Ltd, the auditor performs an inspection of a sample of 25 purchase invoices. For the documentation of tests of details selected from a population, which identifying characteristic does SA 230 specifically require the auditor to record?

SA 230 requires recording the identifying characteristics of the specific items tested, such as invoice number, date and amount, so that an experienced auditor with no prior connection to the audit can understand and re-perform the work. Totals or initials alone are not enough.

  1. AThe identifying characteristics of the specific items or matters testedCorrect
  2. BOnly the total number of items in the population
  3. COnly the auditor's initials on the schedule
  4. DThe names of client staff who provided the invoices, without item details

Explanation

SA 230 requires that the auditor record the identifying characteristics of the specific items or matters tested, for example invoice number and date for purchase invoices, so that another experienced auditor can understand and re-perform the procedure. Population totals or initials alone do not identify what was tested.

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