[Checklist] Auditor’s consideration while preparing audit documentation as per SA 230

SA 230: Audit Documentation, deals with the auditor’s responsibility to prepare audit documentation for an audit of financial statements. It is to be adapted as necessary in the circumstances when applied to audits of other historical financial information. The specific documentation requirements of other SAs do not limit the application of this SA. Laws or regulations may establish additional documentation requirements.

While assembling the final audit file and/or preparing the audit documentation, auditor needs to consider the below-mentioned requirements prescribed under SA 230:

I. Whether the auditor has prepared the audit documentation in a timely manner.

II. Whether the audit documentation is sufficient to understand the following by an experienced auditor, has no previous connection with the audit?

• nature, timing, and extent of the audit procedures performed to comply with the auditing standards and applicable legal and regulatory requirements;
• results of the audit procedures performed by the auditor, and the audit evidence obtained from it; and
• Significant matters arising during the audit, the conclusions reached thereon, and significant professional judgments taken by the auditor to reach those conclusions.

III. Whether the following were recorded while documenting the nature, timing and extent of audit procedures performed?

• identifying characteristics of the specific items or matters tested;
• name of the auditor who performed the audit work and the date such work was completed; and
• name of the reviewer auditor who reviewed the audit work performed and the date and extent of such review.

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