ISA 230 — Audit Documentation

ISA 230 DEALS with the auditor’s responsibility to PREPARE audit documentation for an ‘Audit‘ of Financial Statements.

Table of Contents

ISA 230 – Introduction
- 1. Scope of this ISA
- 2. Effective Date
ISA 230 – Objective
ISA 230 – Definitions
- 1. Audit Documentation
- 2. Audit File
ISA 230 – Requirements
Synopsis

ISA 230 – Introduction

1. Scope of this ISA

The specific documentation Requirements of other ISAs do NOT limit the application of this ISA. Law or regulation May establish additional documentation Requirements.

2. Effective Date

This ISA is EFFECTIVE for audits of financial statements for periods beginning on or after December 15, 2009.

ISA 230 – Objective

The Objective of the ‘Auditor’ is to PREPARE documentation that provides:

A sufficient and appropriate record of the basis for the auditor’s report; AND
Evidence that the audit was planned and performed in accordance with ISAs and applicable legal and regulatory Requirements.

ISA 230 – Definitions

1. Audit Documentation

The RECORD of audit procedures performed, relevant audit evidence obtained and conclusions the auditor reached.

2. Audit File

One or More ‘Folders’ or other ‘Storage Media’ in physical or electronic form containing the records that comprise the audit documentation for a specific engagement.

ISA 230 – Requirements

1. Timely Preparation of Audit Documentation

The ‘Auditor’ shall PREPARE audit documentation on a timely basis.

2. Documentation of the Audit Procedures Performed and Audit Evidence Obtained

2.1 Form, Content and Extent of Audit Documentation

The ‘Auditor’ shall PREPARE audit documentation that is sufficient to enable an experienced auditor to understand:

The nature, timing and extent of the audit procedures;
The results of the audit procedures performed and the audit evidence obtained; AND
Significant Matters arising during the audit, the conclusions reached and significant Professional Judgments Made.

The auditor shall DOCUMENT discussions of ‘Significant Matters’ with Management, those charged with governance and others.

If the auditor identified information that is INCONSISTENT with the auditor’s final conclusion, the auditor shall DOCUMENT how the auditor addressed the inconsistency.

2.2 Departure from a Relevant Requirement

If in EXCEPTIONAL circumstances the auditor judges it necessary to depart from a relevant Requirement in an ISA, the auditor shall DOCUMENT how the ALTERNATIVE AUDIT PROCEDURES performed achieve the aim and the reasons for the departure.

2.3 Matters Arising After the Date of the Auditor’s Report

If in EXCEPTIONAL circumstances the auditor performs new or additional audit procedures or draws new conclusions, the auditor shall DOCUMENT:

The circumstances encountered;
The new or additional audit procedures performed, audit evidence obtained, conclusions reached and their effect on the auditor’s report; AND
When and by whom the resulting changes were Made and Reviewed.

3. Assembly of the Final Audit File

The auditor shall ASSEMBLE the audit documentation in an ‘Audit File‘ and complete the assembly of the audit file on a timely basis after the date of the auditor’s report.

After the assembly of the final audit file, the auditor shall NOT DELETE or DISCARD before the end of the retention period.