Nature and Purpose of Audit DocumentatioNature and Purpose of Audit Documentation

Nature and Purpose of Audit Documentation

1. Audit documentation that meets the requirements of this Auditing Standard and the specific documentation requirements of other relevant Australian Auditing Standards provides:
   1. Evidence of the auditor’s basis for a conclusion about the achievement of the overall objective of the auditor;[1] and
   2. Evidence that the audit was planned and performed in accordance with Australian Auditing Standards and applicable legal and regulatory requirements.
2. Audit documentation serves a number of additional purposes, including the following:

• Assisting the engagement team to plan and perform the audit.
• Assisting members of the engagement team responsible for supervision to direct and supervise the audit work, and to discharge their review responsibilities in accordance with ASA 220.[2]
• Enabling the engagement team to be accountable for its work.
• Retaining a record of matters of continuing significance to future audits.
• Enabling the conduct of engagement quality reviews,[3] other types of engagement reviews[4] and monitoring activities under the firm’s system of quality management.
• Enabling the conduct of external inspections in accordance with applicable legal, regulatory or other requirements.