What is the main purpose of audit documentation?

Content of the working papers

In the development of the audit process it is essential to carry out an organized management of the accounting documents, in order to abbreviate the contents, procedures and conclusions, thus specifying the scope of the procedures performed and streamlining the security processes, in order to apply procedures, actions and decisions in a quick and integrated manner. Documentation is an essential evidence in the audit process, being fundamental to support recorded operations. Therefore, it is the auditor who accepts a document as reliable evidence when he considers that it was processed and created using a good internal control structure, or on the contrary, rejects it when he cannot consider a document as reliable evidence. In addition, and in the case of the development of an external audit, the auditor tends to consider more secure the acceptance of an external document, given that they have been under the control of a client and other parties to the operations, which means that both are in agreement with the information and conditions indicated therein. By judiciously following this process, it is possible to show the client that the results of the audit process have been satisfactory and legitimate.

What is the purpose of the audit documentation?

Documenting the audit serves a number of additional purposes, including: To assist the engagement team in planning and performing the audit. To help those responsible for supervision to direct and supervise the work and to delegate responsibilities in accordance with ISA 220.

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What does the audit documentation provide?

Audit documentation is the record of the audit procedures performed, the relevant audit evidence obtained and the conclusions reached by the auditor. For this purpose, terms such as “working papers” or “working papers” are sometimes also used.

What are the audit documents?

What is an audit document? It is a record of the audit procedures performed, evidence obtained and conclusions drawn.

Nia 500 working papers

The general objective of the working papers is to help the auditor provide assurance to the client and third parties that the audit engagement was performed properly, in accordance with established standards.

The working papers are the set of documents that contain the information obtained by the auditor in his review, as well as the results of the audit procedures and tests applied.

The general objective of the working papers is to assist the auditor in providing appropriate assurance to the client and third parties that the audit engagement was performed in accordance with generally accepted auditing standards.

What is reviewed in an audit?

The accounting audit is, therefore, a systematic process consisting of evaluating the accounts of a company or legal entity over a given period of time. The company’s financial statements, information systems and operating procedures, among others, are reviewed.

What is delivered in an audit?

The inspection and verification of a company’s accounts are necessary at the time of an audit. The auditor is the person in charge of preparing the report, which should reflect the values of the assets, the financial situation and the results obtained by the company.

What is reviewed in a financial statement audit?

An audit of financial statements is the examination of an entity’s financial statements and accompanying disclosures by an independent auditor, resulting in an auditor’s report attesting to the fairness of the presentation of the financial statements and related disclosures.

Objectives of the working papers

Audit documentation, ISA 230, assists an engagement team in planning and performing an audit, as well as enables it to conduct quality control reviews and inspections.    There are three requirements that ISA 230 makes related to audit documentation.

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Deloitte’s International Standards on Auditing, Assurance, Review, Other Assurance and Related Services, and Quality Control – Frequently Asked Questions and Answers elaborates on several concepts in ISA 230 – Audit Documentation.

It is the record of the audit procedures performed, the relevant audit evidence obtained, and the conclusions reached by the auditor. Sometimes terms such as ‘working papers’ or ‘working papers’ are also used for this purpose.

Who can audit financial statements?

The audit of financial statements is a professional activity exclusive to the CPA. The accounting profession worldwide and in Mexico has created specific professional standards to perform financial statement audits.

How do you start an audit?

Defining the initiation of an audit in compliance with the Annual Operating Plan or for additional requirements, includes the designation of the audit team or auditor, the establishment of the processes, topics, functions, plans or programs to be audited as well as the resources and time.

What is the start of an audit?

The initial contact of the auditee to conduct the audit has to be informal and should be made by the audit team. The purposes of the initial contact are as follows: Establish communications with the auditee representatives. To confirm the authority to conduct the audit.

Nia 230 audit documentation

All working papers, both printed and electronic, are the property of the auditor performing the review, and no client or third party should be allowed to have ownership of the working papers. Because the information in the working papers is confidential, the auditor must maintain control of the working papers at all times and allow access to them only under certain circumstances. It is important to note that the Code of Professional Ethics issued by the Mexican Institute of Public Accountants (IMPC), in section 100.5 “Fundamental Principles” states the following regarding confidentiality:

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The working papers are of relevant importance for the auditor to be able to support the type of audit opinion being issued, thus ensuring that the audit was performed in accordance with current auditing standards (international, U.S., etc.). Similarly, to the extent that these working papers are prepared with the necessary quality, the auditor will be successful in the event of any review or inspection by different institutions and organizations. Therefore, it can be concluded that the working papers are the auditor’s “letter of introduction” and that the archiving and safekeeping of the auditor’s working papers is relevant to ensure that the confidentiality and availability of the information is maintained for a minimum period of 5 years and, in the case of open reviews, up to 10 years. Because “If it is not documented in working papers, the work is not done”.