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CA Intermediate · Auditing and Ethics · Audit Documentation

While auditing Sahyadri Pharma Ltd, the auditor found, after signing the audit report dated 28 May, that a working paper on inventory observation was left incomplete, though the procedure was actually performed. The file has not yet been assembled. What is the correct response under SA 230?

The auditor may add the documentation after the report date but must record the circumstances: the reasons for the addition, the date it was made, and who made and reviewed it. Backdating is improper, and leaving the gap or discarding the paper would not meet SA 230.

  1. AAdd the documentation after the report date, as a late entry, recording the date it was added, who added it and the reason for itCorrect
  2. BBackdate the working paper to 27 May so it appears complete at the report date
  3. CLeave the gap, since documentation after the report date is prohibited
  4. DDiscard the inventory working paper and rely on the client's stock sheets

Explanation

Under SA 230, if circumstances require documentation to be added after the date of the auditor's report, the auditor records the specific reasons, the date, and who made and reviewed the changes. Backdating misrepresents when work was documented. Documenting after the report date is permitted when properly recorded; it is not prohibited.

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