Question

What is proper audit documentation and why is it important? What could happen if audit planning and procedures aren’t documented appropriately? What are some key characteristics of quality documentation?

Answer 1

Audit Documentation means to collect proper evidence which can be relied upon to draw an opinion on the financial statements. Audit documentation is the foremost important aspect of any audit assignment. To call an audit documentation proper it should pass the following tests-

1. It should be useful for future audit assignments.

2. It should help the successor in case you are not available at any moment.

3. The evidences should help the auditor to counter himself in case any conflict happen in the future.

A proper audit documentation is important in the above stated manner as it works as a protective shield for the auditor as well as audit staff.

Before starting any audit proper planning should be made and it should be properly documented, so that in future reference can be made to it. Anything which is planned is not necessary to happen the way we have originally thought of. The plan and procedures should be properly documented so that we can make alterations to them in case anything adverse happens or happens against the plans.

Plans and please should be documented and be made available to every member of audit team. It also helps to delegate the work properly and fix the responsibility of each and everyone.