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CMA Intermediate · Corporate Accounting and Auditing · Brief Introduction to Auditing Standards

Under SA 200, how does audit documentation meeting SA 230 relate to the achievement of the auditor's objectives?

Documentation meeting SA 230 evidences the basis for the auditor's conclusions on the overall objectives. Separate documentation that each individual objective was achieved is unnecessary, but documenting a failure to achieve an objective helps assess whether the overall objectives were still met.

  1. AThe auditor must separately document, as in a checklist, that each individual objective has been achieved
  2. BDocumentation provides evidence of the basis for conclusions on the overall objectives; separate documentation of achievement of individual objectives is unnecessary, but a failure to achieve an objective should be documentedCorrect
  3. CNo documentation is needed of a failure to achieve an objective
  4. DDocumentation is relevant only to SA 230 and not to the overall objectives

Explanation

SA 200 says documentation meeting SA 230 and other SAs evidences the basis for conclusions on the overall objectives. It is unnecessary to document separately that individual objectives were achieved, but documenting a failure helps evaluate whether it prevented achieving the overall objectives. The checklist option reverses this.

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