Audit documentation

It’s simple in layman terms,

follow all standards prudently while reporting

if any problem arises, eg in stock audit, purchases not matching warehouse stock, sort it out with email or paper documents with dates and amounts.

If it is tax audit, clear payables and apply for reimbursement for reversals or reimbursement.

if is manufacturing process issue, do variance analysis, document the adverse impact with evidences, eg. prices of commodity high, low quality raw material etc.

So when an auditor makes a final report of company health, all receipts, sources of cash disbursements etc. must be well presented in the annexures. In the end- this is equal to a year end financial reporting/statements. 

 

Audit documentation is the record of procedures performed, evidence obtained, and conclusions reached as part of an audit. The proper preparation of audit documentation is critical for several reasons, including the following:

It can be used as a defense if the auditor is ever accused of negligence.

It is easier for a reviewer to examine.

It represents a better level of quality control over an audit.

It shows auditors in later years how the audit was conducted.

It can be used as a training tool for junior auditors.

The types of audit documentation that should be assembled include the following:

Analyses conducted

Audit plans

Checklists

Confirmation letters

Memoranda and correspondence regarding issues found

Representation letters

Summaries of significant findings

In the interests of keeping the audit documentation down to a manageable length, it is not necessary to include any of the following:

Corrected copies

Duplicates

Notes regarding preliminary conclusions

Superseded drafts

Auditors are required to adhere to the By-law on professional Ethics section 140 in preparation or handling the audit documentation .
how can i explain this question and verify why it is so ?

If it is a matter of professional ethics, section 140 gives you autonomy, discretion and secrecy not unless there is a legal requirement to break confidentiality

https://www.ifac.org/system/files/publications/files/ifac-code-of-ethics-for.pdf

Pic this is related to company acts, changing and retirement of auditor, some rules must be followed:

https://ebook.mca.gov.in/Actpagedisplay.aspx?PAGENAME=17524

It means, under professional ethics, your documentation and evidencing depends upon on demand. 

 

Audit documentation refers to the records or documentation of procedures that auditors performed, the audit evidence that they obtained and the conclusion that makes by them based on the evidence obtained. Audit documentation is sometimes called audit working paper or working paper.

The types of audit documentation that should be assembled include the following:

• Analyses conducted.
• Audit plans.
• Checklists.
• Confirmation letters.
• Memoranda and correspondence regarding issues found.
• Representation letters.
• Summaries of significant findings.