AUDITINGAUDIT DOCUMENTATION (BSA-230)Lecture # 5DefinitinAu!it !cu"ent#tinmeans the record of audit procedures performed,relevant audit evidenceobtained, and conclusions the auditor reached (terms such as working papers or work papersare also sometimes used); andE$%erience!#u!itrmeansan individual(whether internalorexternal to thefirm)who has areasonableunderstandingof (i) audit processes, (ii) ISs andapplicablelegal andregulator!re"uirements, (iii)thebusinessenvironmentinwhichtheentit!operates, and(iv)auditingandfinancial reporting issues relevant to the entit!#s industr!$N#ture f Au!it Dcu"ent#tinudit documentation ma! be recorded on paper or on electronic or other media$ It includes, forexample, audit programs, anal!ses, issues memorandum, summaries of significant matters, lettersof confirmation and representation, checklists, and correspondence (including e%mail) concerningsignificant matters$&r"' Cntent #n! E$tent f Au!it Dcu"ent#tin&he auditor should prepare the audit documentation so as to enable an experienced auditor, havingno previous connection with the audit, to understand' &he nature, timing, and extent of the audit procedures performed to compl! with ISs andapplicable legal and regulator! re"uirements; &he results of the audit procedures and the audit evidence obtained; and Significant matters arising during the audit and the conclusions reached thereon$Dcu"ent#tin f t(e I!entif)in* C(#r#cteri+tic+ f S%ecific Ite"+ r M#tter+ Bein* Te+te!In documenting the nature, timing and extent of audit procedures performed, the auditor shouldrecord the identif!ing characteristics of the specific items or matters being tested$Si*nific#nt M#tter+(udging the significance of a matter re"uires an ob)ective anal!sis of the facts and circumstances$Significant matters include, amongst others'* +atters that give rise to significant risks (as defined in IS ,-., /nderstanding the 0ntit! and its0nvironment and ssessing the 1isks of +aterial +isstatement)$* 1esults of audit procedures indicating(a) that the financial information could be materiall! misstated, or(b) a need to revise the auditor#s previous assessment of the risks of material misstatement and theauditor#s responses to those risks$* 2ircumstances that cause the auditor significant difficult! in appl!ing necessar! audit procedures$* 3indings that could result in a modification to the auditor#s reportMd. Mokhlesur Rahman Mozid, ACMA&he auditor should document discussions of significant matters with management and others on atimel! basis$ If the auditor has identified information that contradicts or is inconsistent with theauditor#sfinal conclusionregardingasignificant matter, theauditorshoulddocument howtheauditor addressed the contradiction or inconsistenc! in forming the final conclusion$I!entific#tin f ,re%#rer #n! -e.ie/erIn documenting the nature, timing and extent of audit procedures performed, the auditor shouldrecord' 4ho performed the audit work and the date such work was completed; and 4ho reviewed the audit work performed and the date and extent of such reviewA++e"01) f t(e &in#1 Au!it &i1e&he auditor should complete the assembl! of the final audit file on a timel! basis after the date ofthe auditor#s report$ fter the assembl! of the final audit file has been completed, the auditor shouldnot delete or discard audit documentation before the end of its retention period4hentheauditorfindsit necessar!tomodif!existingaudit documentationoraddnewauditdocumentation after the assembl! of the final audit file has been completed, the auditor should,regardless of the nature of the modifications or additions, document' 4hen and b! whom the! were made, and (where applicable) reviewed; &he specific reasons for making them; and &heir effect, if an!, on the auditor#s conclusions$C(#n*e+ t Au!it Dcu"ent#tin in E$ce%tin#1 Circu"+t#nce+ #fter t(e D#te f t(eAu!itr2+ -e%rt4hen exceptional circumstances arise after the date of the auditor#s report that re"uire the auditorto perform new or additional audit procedures or that lead the auditor to reach new conclusions, theauditor should document' &he circumstances encountered; &he new or additional audit procedures performed, audit evidence obtained, andconclusions reached; and 4hen and b! whom the resulting changes to audit documentation were made, and (whereapplicable) reviewed$Md. Mokhlesur Rahman Mozid, ACMA