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CA Intermediate · Auditing and Ethics · Audit Documentation

The audit of Mehta Pharma Ltd for the year ended 31 March was signed on 20 May. On 10 June, the engagement team finds that a confirmation reply received on 15 May was not filed in the working papers. The reply supports a balance already audited, and the report is unchanged. What is the correct SA 230 response?

The auditor may add the reply to the file, recording who made the addition, when, why, and who reviewed it. SA 230 permits dated additions after the report date, but earlier documentation must not be deleted, replaced or backdated.

  1. AAdd the reply to the file, record the reason, date and person making the addition, and who reviewed it, without deleting any earlier documentationCorrect
  2. BReplace the earlier working paper with a new one showing the reply as filed on 20 May
  3. CLeave the file as it is, because documentation cannot be changed after the report date
  4. DDestroy the reply since the report has already been issued

Explanation

After the date of the auditor's report, SA 230 permits additions in exceptional circumstances if the documentation is dated and records who made it, when, why and who reviewed it. Backdating or replacing earlier records is improper, so option B is wrong.

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