TOPIC: AUDIT DOCUMENTS

ROLL NAME PHONE

NO NUMBER

03. CELESTE KATE CABRAL 9619442848

05. RASHI CHHAPARWAL 9928969871 TYBBI

26. DISHA MEHTA 7977656788 SEMESTER V
30. SIMRAN PANDITA 8452001092
GROUP 3
38. HETVI SHAH 9619590659

43. YASHASVI SHEKHAWAT 8098875747

45. DIVYA SHINDE 9820003594

48. UNNATI SOMANI 8003778322

 WHAT IS DOCUMENTATION ?

 Refers to the records or documentation of procedures that auditor performs.

 Sometime called ‘audit working paper’ or ‘working paper’.

It is maintained at 3 stages of audit work :

Audit planning Audit Implementation Audit Reporting

Documentation takes record of :

 Audit procedures performed.
 Relevant audit evidence obtained.
 Conclusions reached.
IMPORTANCE OF AUDIT DOCUMENTATION

1. Written records

2. Basis for review

3. Enables auditor to express opinion

4. Enough evidence

5. Includes records of planning and performance of

work
WHY DOCUMENTATION IS REQUIRED ?

 Self – Defense in a court of law

 Effective audit
 To assist as proof of audit evidence during the peer review process
 Evidence that it was planned and performed in accordance with standard on
auditing

WHAT IF AUDIT IS NOT DONE ?

If any person who falls under these consideration fails to get his audit done
before the date which is specified, then they will be liable for a penalty of 1/2% of
the turnover or the gross receipts up to a maximum penalty of Rs. 1,50,000.
 AUDIT WORKING PAPER

What are Working Papers?

Working Papers are the material that auditors prepare or obtain and retain in connection with the
performance of the audit. It may be in the form of data stored on paper, film, electronic media, or
other media. They can also be used in court e.g. in case of negligent audit.

Purpose of Audit Working Papers

Working Papers are the evidence of work done by the auditor, he should prepare working papers
in order to provide evidence that audit was properly performed according to ISA standards.
Working Papers support auditor, in-case he is being sued in court by the client, for negligence of
audit work.
● Assist in the planning and performance of the audit.
● Assist in the supervision and review of audit work.
● Record the audit evidence resulting from the audit work performed to support the auditor's
opinion.
 PERMANENT AUDIT FILE

A permanent file is a set of records that serves as an ongoing reference for an organization's
external auditors. The information in the file is intended to be accessed repeatedly in successive
audits to assist the audit team in the conduct of their tasks.

● Information of company’s nature , history , place of production

● Memorandum of association
● Article of association ‘s copies
● Content list of all important books of company.
● List of working charts
● Photo copy of all directions of employers
● Previous years a/c’s audit report
● List of all reports relating interval audit or interval inspections
 CURRENT AUDIT FILE
A current audit file contains information regarding audit conducted for the current period. These
should be compiled on a timely basis after the completion of audit.

PURPOSE :
• Evidence of planning process
• Analysis of transaction and balance.
CONTAINS :
• Financial statements
• Notes of board minutes
• Communication with third parties such as experts or other auditors
• A summary of unadjusted errors
• Report to partner in including details of significant events and errors, etc
• Who made the changes, when, by whom they were reviewed
• Reasons for making the changes
• The effect of changes on the auditors conclusions.
 AUDIT NOTE BOOK
A notebook which is prepared by the audit staff to note down all the uncleared queries which
s/he may find in the course of audit and requires further clarification and explanation is known
as audit note book. It contains information regarding day-to-day work performed by the audit
staff on any particular date.

CONTENTS OF AUDIT NOTEBOOK :

● Important documents relating to the constitution of the business, i.e. Memorandum Of
Association, Articles Of Association, Partnership Deed and other legal documents.
● The name of the client and the audit year.
● A list of books of accounts in use.
● Names of principal officers, their duties and responsibilities.
● Details regarding accounting and financial policies followed in the business.
● A copy of the audit program.
 AUDIT PROGRAM
An audit program, also called an audit plan, is an action plan that documents what procedures an
auditor will follow to validate that an organization is in conformance with compliance regulations.

OBJECTIVES OF THE AUDIT PROGRAM :

● Management system requirements
● Legal and contractual requirements
● Need for supplier evaluation
● Needs and expectations of interested parties, including customers
● Auditee’s level of performance
● Risks to the auditee
● Results of previous auditee
THANK YOU