Document ID: chunk:federal_register_of_legislation:F2023C01120:reg:3:p8
Version: federal_register_of_legislation:F2023C01120
Segment Type: reg
Provision Reference: reg 3 (pt 8/12)
Character Range: 31403–34449

auditor to consider whether, in light of the audit procedures performed and conclusions reached, there is any individual relevant Auditing Standard objective that the auditor cannot achieve that would prevent the auditor from achieving the overall objectives of the auditor.

Identification of Specific Items or Matters Tested, and of the Preparer and Reviewer (Ref: Para. 9)

A12.         Recording the identifying characteristics serves a number of purposes.  For example, it enables the engagement team to be accountable for its work and facilitates the investigation of exceptions or inconsistencies.  Identifying characteristics will vary with the nature of the audit procedure and the item or matter tested.  For example:

           * For a detailed test of entity‑generated purchase orders, the auditor may identify the documents selected for testing by their dates and unique purchase order numbers.

           * For a procedure requiring selection or review of all items over a specific amount from a given population, the auditor may record the scope of the procedure and identify the population (for example, all journal entries over a specified amount from the journal register).

           * For a procedure requiring systematic sampling from a population of documents, the auditor may identify the documents selected by recording their source, the starting point and the sampling interval (for example, a systematic sample of shipping reports selected from the shipping log for the period from April 1 to September 30, starting with report number 12345 and selecting every 125th report).

           * For a procedure requiring enquiries of specific entity personnel, the auditor may record the dates of the enquiries and the names and job designations of the entity personnel.

           * For an observation procedure, the auditor may record the process or matter being observed, the relevant individuals, their respective responsibilities, and where and when the observation was carried out.

A13.         ASA 220 contains requirements and guidance on the  review of audit documentation.[8]  The requirement to document who reviewed the audit work performed does not imply a need for each specific working paper to include evidence of review.  The requirement, however, means documenting what audit work was reviewed, who reviewed such work, and when it was reviewed.

Documentation of Discussions of Significant Matters with Management, Those Charged with Governance, and Others (Ref: Para. 10)

A14.         The documentation is not limited to records prepared by the auditor but may include other appropriate records such as minutes of meetings prepared by the entity's personnel and agreed by the auditor.  Others with whom the auditor may discuss significant matters may include other personnel within the entity, and external parties, such as persons providing professional advice to the entity.

Documentation of How Inconsistencies have been Addressed (Ref: Para. 11)

A15.         The requirement to document how the