ACCA AA Syllabus B. Planning And Risk Assessment - Importance of Documentation - Notes ^{5 / 7}

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

Justifying the Audit Process

• Working papers are crucial for auditors to defend their approach, work performed, and conclusions in a court of law.
• Without comprehensive working papers, auditors would find it extremely difficult to justify their actions and decisions.

Underpinning the Audit

• The definition and purposes of working papers underscore their fundamental importance to the audit process.
• They are the foundation that allows auditors to plan, execute, and substantiate the audit in a robust and defensible manner.