## Audit Documentation Under SA 300
SA 300 requires the auditor to document three distinct elements of audit planning:
---
## 1. Documentation of the Overall Audit Strategy
The documentation is a record of key decisions considered necessary to:
- Properly plan the audit
- Communicate significant matters to the engagement team
---
## 2. Documentation of the Audit Plan
The documentation is a record of the planned nature, timing, and extent of:
- Risk assessment procedures
- Further audit procedures at the assertion level in response to assessed risks
Additional functions:
- Serves as a record for review and approval before procedures are performed
- May use standard audit programs or completion checklists, tailored to the particular engagement
---
## 3. Documentation of Significant Changes During the Audit
The auditor shall document:
| What to Record | Purpose |
|---|---|
| What changed — changes to strategy or plan | Record of final strategy/plan adopted |
| Why it changed — reasons for the change | Explains why the significant change was necessary |
| Impact — resulting changes to nature, timing, extent of procedures | Reflects appropriate response to audit developments |
---
## Summary Table
| Documentation Element | Content | Purpose |
|---|---|---|
| Overall Audit Strategy | Key decisions on scope, timing, direction | Planning and team communication |
| Audit Plan | Nature, timing, extent of procedures | Record for review/approval |
| Significant Changes | What changed, why, and the resulting impact | Explain and justify response to audit developments |
---
## Exam Tip
When asked what documentation should reflect after material events occur during audit (e.g., material misstatement discovered, unexpected acquisition), always address all three: what changed, why it changed, and what procedures changed as a result.