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CA Intermediate · Auditing and Ethics · Audit Documentation

While auditing Kaveri Textiles Ltd for the year ended 31 March, CA Meera Nair, the engagement partner, signs the audit report on 25 May. The engagement team's file has several working papers still lying with the team members. Under SA 230, within what period should the final audit file ordinarily be assembled?

The final audit file should be assembled within 60 days after the date of the auditor's report. SA 230 requires timely assembly after the report date, and the prescribed period under ICAI's quality standards is 60 days, not 30 days or a period linked to year end.

  1. AWithin 60 days after the date of the auditor's reportCorrect
  2. BWithin 30 days after the date of the auditor's report
  3. CBefore the date of the auditor's report is signed
  4. DWithin 90 days after the end of the financial year

Explanation

SA 230 requires the auditor to complete the assembly of the final audit file on a timely basis after the date of the auditor's report, and the ICAI standard on quality management (SQM 1) treats a period not exceeding 60 days as appropriate. Thirty days is shorter than the prescribed norm, and assembly before signing is not required. The 90-day option is linked to the financial year end, which is the wrong reference point.

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