Page 203 - CA Inter Audit PARAM

Ca Ravi Taori
• Changes may, however, be made to the audit documentation during the final assembly
process if they are administrative in nature. Examples of such changes include:
• Deleting or discarding superseded documentation.
• Sorting, collating and cross-referencing working papers.
• Signing off on completion check lists relating to the file assembly process.
• Documenting audit evidence that the auditor has obtained, discussed and agreed
with the relevant members of the engagement team before the date of the
auditor’s report.

➢ When to assemble?
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.

➢ Completion?
SQC 1 requires firms to establish policies and procedures for the timely completion of the assembly
of audit files. 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.

➢ What after assembly?
After the assembly of the final audit file has been completed, the audit or shall not delete or discard
audit documentation of any nature before the end of its retention period.

➢ Retention Period
SQC 1 requires firms to establish policies and procedures for the retention of engagement
documentation. The retention period for audit engagements ordinarily is no shorter than seven
years from the date of the auditor’s report, or, if later, the date of the group auditor’s report.

QNO-- Examples of Changes During Audit Assembly New Course – (S24M/S24E)
230.15.50 Bhaskar CNO – SA230.120

CA N, statutory auditor of Rock Limited, is in the process of final assembly of audit file. Under what
circumstances, a statutory auditor can make changes to audit documentation during final assembly
process of audit file? Give a few examples of such changes.

OR
M/s. PK & Company, Chartered Accountants, are the statutory auditors of JC Limited. CA Tarun, partner of
M/s. PK & Company, was entrusted to supervise and verify the inventory items as on 31.03.2024. During
the process of verification, a large chunk of draft inventory sheets were accumulated and then a final
inventory sheet was prepared. The audit assistant has kept all these drafts and the final inventory sheet in
the audit file. Is the approach of the audit assistant correct? Which papers/ documents may not be
included in the audit documentation?
Answer Changes may be made to the audit documentation during the final assembly process, if they are
administrative in nature.

Examples of such changes include: -
• Deleting or discarding superseded documentation.
• Sorting, collating and cross-referencing working papers.
• Signing off on completion checklists relating to the file assembly process.
• Documenting audit evidence that the auditor has obtained, discussed and agreed with the relevant
members of the engagement team before the date of the auditor’s report.

QNO-- Audit Documentation Summary Old Course – (M20M/ SM17/M19E/SM20/SM21)
230.17 Bhaskar CNO SA230.140 New Course - (SM25/M24R)
Audit documentation summary may facilitate effective and efficient reviews and inspections of the audit
documentation, particularly for large and complex audits. Explain.

OR
"Completion Memorandum" is helpful as part of the audit documentation. Explain
Answer ➢ The auditor “may” consider it helpful to prepare and retain as part of the audit documentation a

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