IntroductionIntroduction

Introduction

4 The purpose of this Auditing Standard is to establish mandatory requirements and to provide explanatory guidance on audit documentation. Certain other Auditing Standards contain specific mandatory documentation requirements. Laws or regulations may establish additional documentation requirements.

5 The auditor shall prepare, on a timely basis, audit documentation that provides:

(a) a sufficient and appropriate record of the basis for the auditor’s report; and

(b) evidence that the audit was performed in accordance with Auditing Standards and applicable legal and regulatory requirements.

6 Preparing sufficient and appropriate audit documentation on a timely basis helps to enhance the quality of the audit and facilitates the effective review and evaluation of the audit evidence obtained and conclusions reached before the auditor’s report is finalised. Documentation prepared at the time the work is performed is likely to be more accurate than documentation prepared subsequently.

7 In addition to these objectives, audit documentation serves a number of purposes, including:

• Assisting the audit team to plan and perform the audit.
• Assisting members of the audit team responsible for supervision to direct and supervise the audit work, and to discharge their review responsibilities in accordance with ASA 220 Quality Control for Audits of Historical Financial Information.
• Enabling the audit team to be accountable for its work.
• Retaining a record of matters of continuing significance to future audits.
• Enabling an experienced auditor to conduct quality control reviews[1] and inspections in accordance with quality control requirements for firms issued by a professional accounting body.
• Enabling an experienced auditor to conduct external inspections in accordance with applicable legal, regulatory or other requirements.