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CMA Intermediate · Corporate Accounting and Auditing · Audit Engagement, Audit Program, Audit Documentation and Audit Evidence

Which of the following is stated in SA 230 as a purpose of audit documentation?

Retaining a record of matters of continuing significance to future audits is a stated purpose of audit documentation under SA 230. Documentation also helps plan, supervise and review the audit, but it does not guarantee accuracy or shift responsibility to management.

  1. ARetaining a record of matters of continuing significance to future auditsCorrect
  2. BGuaranteeing that no misstatement exists in the financial statements
  3. CReplacing the need for supervision by the engagement partner
  4. DTransferring audit responsibility to the management

Explanation

SA 230 lists retaining a record of matters of continuing significance to future audits as an additional purpose of documentation. Documentation does not guarantee absence of misstatement, replace supervision (it assists it), or transfer responsibility.

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