Page 211 - Internal Auditing Standards

Guide to Using International Standards on Auditing in the Audits of Small- and Medium-Sized Entities Volume 1—Core Concepts

Question Response

• For staff inquiries, their names, job designations, and dates of inquiry; and

• For observations, the process or matter being observed, relevant individuals, their
respective responsibilities, and where/when the observation was carried out.
However, abstracts or copies of the entity’s records (such as significant contracts and

agreements) may be included if considered appropriate.
Does Each Page No. The discipline of initialling working papers (as to who performed and who
of the Audit reviewed the audit work) has the effect of holding the engagement team

File Need To Be accountable. However, this does not mean that each page of the working paper
Initialled and file needs to be initialled and dated. For example, the evidence of preparation and

Dated by the review could be indicated for each section, module or unit in the file rather than

Preparer and Then the individual pages. The preparation of working papers (typically at assistant level)
by the Reviewer? and their detailed review (typically at the manager level) would involve initialling
every working paper section, module or unit, whereas a general review (at the

partner level) might involve only looking at key sections of the file where signifi cant
professional judgments were made.

Should ALL No. It is neither necessary nor practicable for the auditor to document every matter
Considerations considered, or professional judgment made. It is the significant matters and signifi cant

and Use of judgments made on those matters during the audit that need to be documented.
Professional Documentation of significant matters and judgments explains the auditor’s conclusions,

Judgments Be and reinforces the quality of the judgments. This can often be achieved through the
Documented? preparation of the significant issues memorandum at the completion of the audit.

Are Preliminary No. There is no requirement to retain documentation that was incorrect or
Drafts of Financial superseded.
Statements
Required To Be
Kept if Materially
Inconsistent with
the Final Financial
Statements?

Is It Necessary to No. Other than in exceptional circumstances, compliance is required with each ISA
Document Non- requirement that is “relevant.” An ISA is clearly not relevant when the entire ISA is not
Compliance with applicable, or when an ISA requirement is conditional and the condition does not exist.
ISA Requirements
that Are Really Not
Applicable to the
Audit?

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