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

While assembling the final audit file after signing the auditor's report, the audit senior of Kavya & Associates wants to do the following. Which one is an acceptable administrative change under SA 230?

Sorting, collating and cross-referencing working papers is acceptable. Final file assembly after the report date is an administrative process, so it cannot involve new audit procedures or new conclusions, though deleting superseded documentation and signing off completion checklists are also allowed.

  1. APerforming a new confirmation procedure for debtors and adding the result to the file
  2. BChanging the earlier conclusion on inventory valuation after a fresh discussion with the client
  3. CSorting, collating and cross-referencing working papersCorrect
  4. DReplacing signed working papers with rewritten ones to hide review comments

Explanation

Assembling the final file after the report date is administrative and does not involve new procedures or new conclusions. Sorting, collating and cross-referencing working papers is a listed example. New confirmations and changed conclusions are new work, so they are not allowed as administrative changes.

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