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CA Intermediate · Auditing and Ethics · Audit Documentation

Mehra & Co., Chartered Accountants, completed the statutory audit of Kaveri Textiles Ltd. and signed the audit report on 28 June. The engagement partner wants to know the time limit within which the final audit file should be assembled. As per SA 230 and SQC 1 (now SQM 1) principles, what is the appropriate response?

The final audit file should be assembled on a timely basis, ordinarily within 60 days after the date of the auditor's report. The period runs from the report date, not from the financial year-end or the AGM, so the firm should complete assembly by that limit.

  1. AAssemble the final file on a timely basis, ordinarily not later than 60 days after the date of the auditor's reportCorrect
  2. BAssemble the final file within 60 days after the financial year-end, regardless of the report date
  3. CAssemble the file only when the next year's audit begins
  4. DAssemble the file within 7 days after the Annual General Meeting

Explanation

SA 230 requires the auditor to complete the assembly of the final audit file on a timely basis after the date of the auditor's report; ordinarily a period not exceeding 60 days is appropriate. The time is counted from the report date, not the year-end, so the option based on the year-end is wrong.

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