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In general, what elements are typically included in audit documentation, considering that the quantity, type, and content may vary based on the circumstances?

a) Client's financial statements, trial balances, and internal control reports.
b) Auditor's working papers, evidence obtained, and conclusions reached.
c) Legal contracts, correspondence with the client, and employee personnel files.
d) Industry benchmarks, market analyses, and competitor financial statements.

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Final answer:

Audit documentation generally comprises the auditor's working papers, collected evidence, and conclusions. These documents include detailed records of the audit process, supporting facts, and the auditor's final opinions on the compliance of financial statements.

Step-by-step explanation:

In general, audit documentation typically includes elements such as the auditor's working papers, evidence obtained during the audit, and the conclusions reached by the auditor. These elements may vary based on the specific circumstances of the audit. Working papers serve to document the procedures performed, evidence gathered, and conclusions drawn in the course of the audit. They include information such as audit plans, analyses, issues noted, summaries of significant findings, and letters of representation. Appropriate evidence to support the auditor's conclusion can come in various forms, like statements of fact, statistics, and expert opinions, and should always be obtained from reliable sources. In addition, the conclusions section encapsulates the auditor's final opinions regarding the financial statements and their compliance with relevant accounting standards.

Other important components may include internal control reports and trial balances, but legal contracts, employee files, and industry benchmarks, while potentially useful for contextual understanding, are not typically part of core audit documentation.

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