Working Papers (continued)

Specific documentation requirements include

·1 Audit risk and materiality- The auditor must document the nature and effect of
aggre-
gated misstatements and the auditor's conclusion as to whether the financial statements
are materially misstated.
Analytical procedures-The auditor must document (a) the factors considered in de-
veloping expected relationships, (b) the expected relationship, (c) the results of the com-
parisons made, and (d) any additional procedures performed in response to unexpected
relationships.
Going concern doubts-The auditor must document (a) the conditions or events that
led to any significant doubts, (b) the work performed to evaluate management plans, (c)
the conclusion as to whether doubt remains or has been alleviated by such plans, and
(d) effect of the conclusion on the financial statements, disclosures, and audit report.

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PCAOB Audit Standard 3

For audits of public companies reporting to the SEC, audit documentation requires include the
preparation of an engagement completion document.
·2 This document must include all significant finding or issues arising from the
engagement.
All documentation necessary to understanding these findings must either be included in
the engagement completion document or else must be cross-referenced to the working
papers that provide such documentation.

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Evidence - Module 3