Skip to content

CA Intermediate · Auditing and Ethics · Audit Documentation

Partner CA Reena of Reena & Co. is asked by the management of Delta Foods Ltd to hand over the audit working papers of the previous year, as they want to use them for an internal review. Under SA 230 and the Code of Ethics, what is the correct response?

Working papers belong to the auditor, who may at her discretion release portions or extracts to the client, provided this does not undermine the validity of the audit work or her independence. The client has no right to the whole file merely because it paid the fee.

  1. AWorking papers are the auditor's property; she may, at her discretion, release portions or extracts if the disclosure does not undermine the validity of the audit work or independenceCorrect
  2. BHand over the entire file, since working papers belong to the client who paid the audit fee
  3. CRefuse in all cases, even to produce an extract, as working papers can never be shared
  4. DHand over the file only after deleting the sections that contain the auditor's judgments, without informing the client

Explanation

Audit documentation is the property of the auditor. She may, at her discretion, make portions or extracts available to the client, provided disclosure does not undermine the validity of the work or, for assurance engagements, the independence of the auditor. The client does not own the file, and a blanket refusal is not what the standard says. Secretly deleting parts is improper.

Did you get it right without looking?

One question tells you little. A timed set on Audit Documentation shows your real accuracy, how long you take and where you lose marks.

Practise Audit DocumentationFree diagnostic mock

More Audit Documentation questions