DocumentationDocumentation

Documentation

1. The auditor shall include the following in the audit documentation[12] of the identification and the assessment of the risks of material misstatement required by ASA 315:[13]
   1. The significant decisions reached during the discussion among the engagement team regarding the susceptibility of the entity’s financial report to material misstatement due to fraud;
   2. The identified and assessed risks of material misstatement due to fraud at the financial report level and at the assertion level; and
   3. Identified controls in the control activities component that address assessed risks of material misstatement due to fraud.
2. The auditor shall include the following in the audit documentation of the auditor’s responses to the assessed risks of material misstatement required by ASA 330:[14]
   1. The overall responses to the assessed risks of material misstatement due to fraud at the financial report level and the nature, timing and extent of audit procedures, and the linkage of those procedures with the assessed risks of material misstatement due to fraud at the assertion level; and
   2. The results of the audit procedures, including those designed to address the risk of management override of controls.
3. The auditor shall include in the audit documentation communications about fraud made to management, those charged with governance, regulators and others.
4. If the auditor has concluded that the presumption that there is a risk of material misstatement due to fraud related to revenue recognition is not applicable in the circumstances of the engagement, the auditor shall include in the audit documentation the reasons for that conclusion.

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