L5pp_Audit%20documentations%20(students) - AUDIT...

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Unformatted text preview: AUDIT DOCUMENTATION The auditor should prepare, on a timely basis, audit documentation that provides: (a) A and record of the basis for the auditor’s report; and (b) Evidence that the audit was performed in accordance with HKSAs and applicable legal and regulatory requirements 1 HKSA AUDIT DOCUMENTATION Auditors should document matters which are important in providing evidence to support the audit opinion. 2 DOCUMENTATION “Documentations” means the working papers prepared by and for, or obtained and retained by the auditors in connection with the performance of an audit. Means The record of audit procedures performed, relevant audit evidence obtained, and conclusions the auditor reached HKSA230 “working papers” or “workpapers” 3 WORKING PAPERS Working papers have these functions: basis for planning next audit a record of accumulated and the results of the tests data for determining the of audit report basis for review by supervisors and partners 4 TYPES OF WORKING PAPER FILES Most CPA firms maintain working papers in two types of files: file file 5 PERMANENT FILES Contain information and data which is of continuing interest from to . Some examples: Copies of long-term , . Analyses of accounts with importance. Information supporting the understanding of the internal control systems. Results of analytical procedures from audits. 6 CURRENT FILES Contain all the other working papers relating to the year being audited. Some examples: that list the audit procedures. General information such as planning memos, notes on with clients. schedules: group detailed accounts from the general ledger. trial balance. entries. of amounts (e.g. bank recon.) A test of Informational data: e.g. time budgets, tax returns. Outside evidence: e.g. confirmations. 7 GENERAL CHARACTERISTICS OF AUDIT WORKING PAPERS Proper identification Heading Indexing, and tick marks Indication of work performed Sufficient information to fulfill the audit objectives reached 8 ORGANIZATION OF WORKING PAPERS The auditor's working papers need to be organized in such a way that any member of the audit team (and others) can find the audit evidence that supports each financial statement account. See Figure 4-3. 9 OWNERSHIP OF THE WORKING PAPERS The working papers are the property of the . This includes not only working papers prepared by the auditor but also working papers at the request of the auditor. 10 ACCESS TO WORKING PAPERS Must be carefully controlled because of the sensitive information contained. Adhere to the rule of conduct regarding confidentiality of client information. 11 AUDIT PLAN AND AUDIT PROGRAMME Audit plan contains the to be followed by the auditor in conducting the audit. outlines the understanding of the client and the potential audit risks. Information on how the audit resources are to be allocated to various parts of the engagement. Audit programme a set of auditor. that will be conducted by the 12 ...
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This note was uploaded on 03/21/2011 for the course ACCOUNTING 110 taught by Professor Mcwilliams during the Spring '09 term at San Jose State University .

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