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CS Professional · Compliance Management, Audit and Due Diligence · Audit Process and Documentation

While auditing Kaveri Foods Pvt Ltd, CA Meera's team keeps an earlier draft of a working paper that was later corrected for typographical errors, a duplicate copy of a bank confirmation, and a note reflecting her preliminary thinking on inventory that was later superseded. As per SA 230, what is the position on retaining these items in audit documentation?

Under SA 230 the auditor need not include in audit documentation superseded drafts of working papers, notes reflecting incomplete or preliminary thinking, earlier copies of documents corrected for typographical errors, or duplicates. All three items described fall in these categories, so they need not be kept.

  1. AAll of them must be retained for seven years as part of the audit file
  2. BOnly the duplicate must be retained, as it is evidence
  3. CThe auditor need not include these items in the audit documentationCorrect
  4. DThey must be retained only if the entity is a listed company

Explanation

SA 230 says the auditor need not include superseded drafts of working papers and financial statements, notes reflecting incomplete or preliminary thinking, previous copies of documents corrected for typographical or other errors, and duplicates of documents. All three items fall in these categories. Hence retaining them is not required.

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