“No Documentation = No Work Done” Audit

Transcript:“No Documentation = No Work Done” Audit:
“No Documentation = No Work Done” Audit Documentation- The Saviour -By Bharat Sonkhiya Day and Date: Thursday 7th December, 2023 ICAI-JAIPUR BRANCH 1 Expectation Gap in Audit Knowledge Gap Performance Gap Evolution Gap Attest Function Corporate Failure Fraud Failure Impact in Company Audit What is the Need to discuss Audit Documentation 2 Audit Documentation- (SA 230) Audit documentation means the record of: audit procedures performed relevant audit evidence obtained and conclusions the auditor reached (terms such as “working papers” or “workpapers” are also sometimes used) Self- Speaking 3 4 Regulators to oversee Quality of Audit and Documentation 5 Continued.. 6 7 Audit Documentation- The Evidence of Audit Before issuing Auditor’s Report the Auditor shall document: Assertions related & audit procedures related to significant risk areas Evidence regarding timely preparation and review of Audit Documentation Details of samples & the relevant parameters tested Important aspects related to SMEs Factors & basis of modification of the modified opinion Before accepting audit engagement auditor shall document: Assessment of independence with reference to the proposed audit client Independence declarations from all of its employees and independence evaluations Client & Engagement evaluation as per the requirements of SQC 1 Before initiating the Audit Engagement, Auditor shall document: Determination of materiality levels Critical aspects of audit planning, like work allocation, audit procedures to address the engagement risks etc. Identification of significant risk areas and reasons for classifying the same as significant risk area 8 Importance of Audit Documentation 9 Form, Content and Extent of Audit Documentation The results of the audit procedures performed, and the audit evidence obtained . Significant matters arising during the audit, the conclusions reached thereon, and significant professional judgments made in reaching those conclusions The nature, timing, & extent of the audit procedures performed to comply with the SAs & applicable legal & regulatory requirements The auditor shall prepare audit documentation that is sufficient to enable an experienced auditor, having no previous connection with the audit, to understand: 10 Determining Factors of Form, Content & Extent The size & complexity of the entity. The nature of the audit procedures to be performed. The identified risks of material misstatement The significance of the audit evidence obtained & the nature and extent of exceptions identified The need to document a conclusion or the basis for a conclusion. The audit methodology and tools used in Data Analytics. 11 Working Paper Contents In general, a working