Page 202 - CA Inter Audit PARAM

Ca Ravi Taori
inserted papers and the copy of audit file was sent to regulator. Discuss, the issues involved, in context
of “audit documentation”.

OR
Rajni, a CA student, has understood that SA 230 requires auditor to prepare audit documentation on a
timely basis. While reading about SQC 1, she notices that time limit for completion of final audit file is
ordinarily not more than 60 days after the date of auditor’s report. She finds it to be puzzling. Unable
to comprehend, she seeks your guidance. Guide her
Answer TIMELY PREPARATION OF AUDIT DOCUMENTATION
Preparing sufficient and appropriate audit documentation on a timely basis helps to enhance the quality
of the audit and facilitates the effective review and evaluation of the audit evidence obtained and
conclusions reached before the auditor’s report is finalized. Documentation prepared after the audit work
has been performed is likely to be less accurate than documentation prepared at the time such work is
performed.
Time Limit
An appropriate time limit within which to complete the assembly of the final audit file is ordinarily not
more than 60 days after the date of the auditor’s report.

Case Discussion & Conclusion.
In the given case, even after passage of more than six months, she has not assembled audit file. Besides,
she has put in some papers with current date which is not permissible at all. It shows that part of audit
documentation has been prepared afterwards putting a question mark on quality of audit.

QNO-- Assembly of Audit File Old Course - (M18M/M19M/N19R/N19E/M22R/N22E/M23R/N23R)
230.15 Bhaskar CNO SA230.120 New Course—(M24M/M24E/J25M)
The auditor shall assemble the audit documentation in an audit file and complete the administrative
process of assembling the final audit file on a timely basis after the date of the auditor’s report. Discuss
OR
SQC 1 requires firms to establish policies and procedures for the timely completion of the assembly of
audit files. Explain
OR
Briefly explain the policies and procedures of assembling the final audit file on a timely basis after the
date of auditor's report under SQC-1.
OR
One of the factors affecting the form, content and extent of audit documentation relates to size and
complexity of the entity. State six other factors in this respect.
OR
CA B, an auditor, after the completion of busy audit season, was occupied in assembling of final audit files
of one of his client. First of all, he started preparing various documents of that client and then kept those
documents in various folders. He was preparing documents as well as audit file in paper form because he
believed that it is mandatory. He could complete documentation as well as assembling of final audit file of
that client after three months from the date of audit report. Generally, he retains audit file of the clients
for 4 years from the date of audit report. Check the validity of the action of CA B.

OR
M/s KSJS & Associates are the statutory auditors of Moon Ltd. for the financial year 2023-24. During an
audit briefing, CA Sanket, the engagement partner, explained that the auditor must assemble the audit
documentation in an audit file and complete the administrative process of finalising the audit file on a
timely basis after the date of the auditor’s report. He also highlighted the requirements of SQC 1
regarding establishment of policies and procedures for the retention of engagement documentation in a
firm. Explain the requirements related to the timely assembly and retention of audit files in accordance
with relevant Engagement and Quality Control Standards.

Answer ➢ What is done in assembly?
• The completion of the assembly of the final audit file after the date of the auditor’s report is
an administrative process that does not involve the performance of new audit procedures
or the drawing of new conclusions.
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