Assembly of the Final Audit File (Ref: PAssembly of the Final Audit File (Ref: Para. 14‑16)

Assembly of the Final Audit File (Ref: Para. 14‑16)

1. ASQM 1 requires firms’ systems of quality management to establish a quality objective that addresses the assembly of engagement documentation on a timely basis after the date of the engagement reports.[14] An appropriate time limit within which to complete the assembly of the final audit file is ordinarily not more than 60 days after the date of the auditor’s report.[15]
2. The completion of the assembly of the final audit file after the date of the auditor’s report is an administrative process that does not involve the performance of new audit procedures or the drawing of new conclusions. Changes may, however, be made to the audit documentation during the final assembly process if they are administrative in nature. Examples of such changes include:

• Deleting or discarding superseded documentation.
• Sorting, collating and cross‑referencing working papers.
• Signing off on completion checklists relating to the file assembly process.
• Documenting audit evidence that the auditor has obtained, discussed and agreed with the relevant members of the engagement team before the date of the auditor’s report.

1. ASQM 1 requires firms’ systems of quality management to establish a quality objective to address the appropriate maintenance and retention of engagement documentation to meet the needs of the firm and to comply with law, regulation, relevant ethical requirements, or AUASB Standards.[16] The retention period for audit engagements ordinarily is no shorter than five years from the date of the auditor’s report, or, if later, the date of the auditor’s report on the group financial reports, when applicable.[17]

Aus A23.1 Under section 307B of the Corporations Act 2001, the auditor or member of an audit firm is required to retain all audit working papers prepared by or for, or considered or used by, the auditor in accordance with the requirements of the Australian Auditing Standards until:

(a) The end of seven years after the date of the audit report prepared in relation to the audit or review to which the audit working papers relate; or

(b) An earlier date determined by the Australian Securities and Investments Commission for the audit working papers.

Aus A23.2 Relevant legislation or regulation, other than the Corporations Act 2001, may require the retention of audit working papers for specified periods.

1. An example of a circumstance in which the auditor may find it necessary to modify existing audit documentation or add new audit documentation after file assembly has been completed is the need to clarify existing audit documentation arising from comments received during monitoring activities or external inspections.