Question

What are the purposes served by documentation in an audit?

a. To provide support for the audit report
b. To aid in the planning, performance, and supervision of the audit
c. To provide a basis for quality reviews
d. To provide evidence supporting the auditor's significant conclusions

Answer 1

The purposes served by documentation in an audit include providing support for the audit report, aiding in the planning and performance of the audit, providing a basis for quality reviews, and providing evidence supporting the auditor's significant conclusions.

Step-by-step explanation:

The purposes served by documentation in an audit include:

1. To provide support for the audit report: Documentation helps in providing evidence and support for the auditor's findings and conclusions.
2. To aid in the planning, performance, and supervision of the audit: Documentation helps in organizing and managing the audit process, ensuring that all necessary steps are followed.
3. To provide a basis for quality reviews: Documentation serves as a reference for quality reviews, allowing for the assessment of the audit's accuracy, completeness, and compliance with professional standards.
4. To provide evidence supporting the auditor's significant conclusions: Documentation helps in substantiating the auditor's significant findings and conclusions, providing a basis for the audit opinion.