# SA 230 — Audit Documentation
## What is Audit Documentation?
It is the record of:
- Audit procedures performed,
- Audit evidence obtained, and
- Conclusions the auditor reached.
Also called working papers.
## Why Document? (Purposes)
- Assists the team to plan & perform the audit.
- Enables the team to be accountable for its work.
- Assists in directing & supervising audit work.
- Retains a record of matters of continuing significance for future audits.
- Enables quality control reviews & inspections under SQC 1.
- Enables external inspections as per L&R requirements.
## Objective
Prepare documentation that provides:
- A sufficient and appropriate record of the basis for the auditor's report.
- Evidence that the audit was planned and performed as per SAs and applicable L&R requirements.
## Form, Content & Extent
The auditor shall prepare documentation sufficient for an experienced auditor having no previous connection with the audit to understand:
- The Nature, Timing & Extent (NTE) of audit procedures performed.
- The results of those procedures and audit evidence obtained.
- Significant matters arising during the audit and conclusions reached.
### When documenting NTE, record:
- Identifying characteristics of items/matters tested (e.g., invoice numbers tested).
- Who performed the work and the date completed.
- Who reviewed the work and the date and extent of review.
### Discussions with mgt/TCWG
Document nature of significant matters discussed, when and with whom.
## Factors influencing Form, Content & Extent
- Size & complexity of the entity.
- Identified Risk of Material Misstatement (ROMM).
- Audit methodology and tools used.
- Nature of audit procedures performed.
- Significance of audit evidence obtained.
- Nature & extent of exceptions identified.
- Need to document conclusions not determinable from the documentation of work performed.
## Examples of Audit Documentation
- Audit programmes, analyses, issues memoranda.
- Summaries of significant matters.
- Letters of confirmation and representation.
- Checklists.
- Correspondence (including e-mail) on significant matters.
> Audit documentation is NOT a substitute for the entity's accounting records.
> The auditor need NOT include: superseded drafts, incomplete preliminary notes, corrected typos, duplicate documents.
## Audit File
One or more folders (physical or electronic) containing records that comprise audit documentation for a specific engagement.
## Ownership
Per SQC 1 — unless L&R says otherwise, audit documentation is the property of the AUDITOR. The auditor may, at his discretion, make portions available to the client, provided disclosure does not undermine the validity of the work.
## Assembly of the Final Audit File
- Complete assembly on a timely basis after the report is finalized.
- Time limit: not more than 60 days after the date of the auditor's report.
- Assembly is administrative — no new procedures or new conclusions.
### Permissible administrative changes during assembly:
- Documenting audit evidence obtained and discussed with the team before the report date.
- Sorting, collating and cross-referencing working papers.
- Signing off on completion checklists.
- Deleting / discarding superseded documentation.
## Retention
SQC 1 requires retention for at least 7 years from the date of the auditor's report (or, if later, from the date of the group auditor's report).
## Completion Memorandum / Audit Documentation Summary
A summary describing:
- Significant matters identified during the audit, and
- How they were addressed.
Useful for large and complex audits; facilitates effective review and inspection.
## Documenting Significant Matters & Professional Judgment
Examples of significant matters:
- Procedures indicating FS could be materially misstated, or a need to revise the previous assessment of ROMM.
- Matters giving rise to significant risks.
- Circumstances causing significant difficulty in applying necessary procedures.
- Findings that could result in modification of opinion or inclusion of an Emphasis of Matter (EOM) paragraph under SA 706.
### When to document professional judgment:
- Rationale where the SA says auditor 'shall consider' and the consideration is significant.
- Basis for conclusion on reasonableness of subjective judgments (e.g., accounting estimates).
- Basis for conclusion on authenticity of documents when investigation was undertaken because authenticity was doubted.