Skip to content

CA Intermediate · Auditing and Ethics · Audit Documentation

The audit of Sundaram Pharma Ltd was signed on 30 June 2026 and the auditor's report is dated the same day. The firm's audit file was assembled and finalised on 15 August 2026. Subsequently, on 10 September 2026, the engagement partner discovers that a working paper was left incomplete and wants to add a missing cross-reference. What is the correct response under SA 230 and SQC 1/SQM 1 principles?

The auditor may add the cross-reference after file assembly, but must record the specific reason, the date, who made the change and who reviewed it. Existing papers cannot be deleted or discarded before the retention period ends, and backdating would be misleading, so only a transparent, documented addition is acceptable.

  1. ADelete the old paper and replace it, as the file has not yet reached the retention period
  2. BMake no change, because any addition after the file assembly is prohibited in all circumstances
  3. CAdd the cross-reference and backdate it to 30 June 2026 so that the file appears complete at the report date
  4. DAdd it as a clearly documented addition, recording the date, who made it, who reviewed it and the reason, without deleting or discarding the original papersCorrect

Explanation

After the assembly of the final audit file is completed, the auditor must not delete or discard documentation before the end of its retention period. If changes or additions are necessary, SA 230 requires documenting the specific reasons, when and by whom they were made, and who reviewed them. Backdating is improper and a blanket prohibition is incorrect.

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