Syllabus B. Planning And Risk Assessment B6. Audit planning and documentation

B6g. Importance of Documentation 5 / 7

Syllabus B6g)

Explain the need for, and the importance of, audit documentation.

Documentation provides sufficient records for the basis of the audit report

It also proves that the audit was planned and performed correctly

Documentation enables an experienced auditor

With no previous connection to the audit to understand...

  • The nature of the audit procedures used

  • The results and evidence obtained

  • Significant matters and conclusions

  • Significant professional judgements

Another way of looking at this:

Audit documentation should:

  1. Repeat

    Allow an experienced auditor (with no previous client knowledge) to know exactly what work was performed and what conclusions reached.

  2. Record of:

    Nature, timing and extent of the audit procedures performed

    Results of procedures

    Conclusions drawn

  3. Reasoning

    The auditor’s reasoning on all significant, judgemental matters is clear

    This may help in a future negligence claim