Document ID: chunk:federal_register_of_legislation:F2023C01119:body:0:p41
Version: federal_register_of_legislation:F2023C01119
Segment Type: other
Provision Reference: 
Character Range: 117043–120168

of quality management.

Documentation (Ref: Para. 41)

A117.      In accordance with ASA 230,[46] audit documentation provides evidence that the audit complies with the ASAs. However, it is neither necessary nor practicable for the auditor to document every matter considered, or professional judgement made, in an audit. Further, it is unnecessary for the auditor to document separately (as in a checklist, for example) compliance with matters for which compliance is demonstrated by documents included within the audit file.

A118.      Documentation of the performance of the requirements of this ASA, including evidencing the involvement of the engagement partner and the engagement partner's determination in accordance with paragraph 40, may be accomplished in different ways depending on the nature and circumstances of the audit engagement. For example:

           * Direction of the engagement team can be documented through signoffs of the audit plan and project management activities;

           * Minutes from formal meetings of the engagement team may provide evidence of the clarity, consistency and effectiveness of the engagement partner's communications and other actions in respect of culture and expected behaviours that demonstrate the firm's commitment to quality;

           * Agendas from discussions between the engagement partner and other members of the engagement team, and where applicable the engagement quality reviewer, and related signoffs and records of the time the engagement partner spent on the engagement, may provide evidence of the engagement partner's involvement throughout the audit engagement and supervision of other members of the engagement team; or

           * Signoffs by the engagement partner and other members of the engagement team provide evidence that the working papers were reviewed.

A119.      When dealing with circumstances that may pose risks to achieving quality on the audit engagement, the exercise of professional scepticism, and the documentation of the auditor's consideration thereof, may be important. For example, if the engagement partner obtains information that may have caused the firm to decline the engagement (see paragraph 24), the documentation may include explanations of how the engagement team dealt with the circumstance.

A120.      Documentation of consultations with other professionals that involve difficult or contentious matters that is sufficiently complete and detailed contributes to an understanding of:

           * The nature and scope of the issue on which consultation was sought; and

           * The results of the consultation, including any decisions taken, the basis for those decisions and how they were implemented.

  [1]  See ASQM 1, paragraph 14.
  [2]  See ASA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with Australian Auditing Standards, paragraphs 15‒16 and A20‒A24.
  [3]  "Engagement partner," "partner," and "firm" is to be read as referring to their public sector equivalents where relevant.
  [4]  See ASA 620 Using the Work of an Auditor's Expert,