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CMA Final · Cost and Management Audit · Cost Audit Documentation, Audit Process and Execution

Under the application guidance of SCA 102, which statement about the timing of preparing audit documentation is correct?

Timely preparation of audit documentation enhances audit quality. Documentation written after the audit work has been performed is likely to be less accurate than documentation prepared during execution of the work, so the Cost Auditor should document as the work proceeds.

  1. ADocumentation prepared after the audit work is completed is generally more accurate than that prepared during execution
  2. BTiming of documentation has no bearing on audit quality
  3. CPreparing documentation on a timely basis helps enhance audit quality, and documentation prepared after the work is likely to be less accurateCorrect
  4. DDocumentation should be prepared only at the end so that all conclusions are final

Explanation

SCA 102 states that timely preparation enhances audit quality, while documentation prepared after the work has been performed is likely to be less accurate than that prepared during execution. Option A reverses this.

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