Skip to content

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

While drafting an audit program for a manufacturing company's annual audit, the engagement partner states that the program should be treated as a documented plan of procedures. Which role does the audit program mainly serve under the audit documentation purposes listed in SA 230?

An audit program, as audit documentation, assists the engagement team in planning and performing the audit and helps supervisors direct, supervise and review the work. It does not replace working papers, shift opinion responsibility to management, or remove the need to gather audit evidence on significant balances.

  1. AIt assists the engagement team to plan and perform the audit and the supervisors to direct and review the workCorrect
  2. BIt replaces the need to retain any working papers after the audit is completed
  3. CIt transfers responsibility for the audit opinion from the auditor to management
  4. DIt removes the need for the auditor to obtain audit evidence on significant balances

Explanation

SA 230 lists, among the purposes of audit documentation, assisting the engagement team to plan and perform the audit and assisting those responsible for supervision to direct, supervise and review the work. An audit program is such documentation. The other options contradict the standard: documentation does not replace evidence, retention or the auditor's responsibility.

Did you get it right without looking?

One question tells you little. A timed set on Audit Engagement, Audit Program, Audit Documentation and Audit Evidence shows your real accuracy, how long you take and where you lose marks.

Practise Audit Engagement, Audit Program, Audit Documentation and Audit EvidenceFree diagnostic mock

More Audit Engagement, Audit Program, Audit Documentation and Audit Evidence questions