DOCUMENTATION

Prepared By: Naima Sultana FCA

Deputy Director (Audit & consultancy)
ACNABIN Chartered Accountants
 What is Documentation?
Audit documentation as working papers is the record of procedures performed,
relevant evidence obtained and conclusions the auditor reached.
Purposes of documentation
 This should be a record of the procedures performed. The evidence obtained
and the conclusions reached;
 This provides evidence that the engagement was performed in accordance
with any relevant standards, laws and regulatory requirements; and
 A record of work done also assists the team to plan and direct work, facilities
review by senior staffs, provided accountability for work and enables to carry
out any additional review requirements.
Audit documentation or Working paper should provide:
Audit documentation should provide:
 A sufficient and appropriate record of the basis for the assurance provider’s
report;
 Evidence that the engagement was performed in accordance with standards and
applicable legal and regulatory requirements.
  Naima Sultana FCA
  Form and content of working papers or documentation
The form and content of working papers are affected by various maters such
as:
 The nature of the audit procedures to be performed;
 The size and complexity of the entity;
 The identified risks of material misstatements;
 The extent of judgment required in performing the work and evaluating
the results;
 The significance of the audit evidence obtained;
 The nature of extent of problems or exceptions from expected test
results identified; and
 The audit methodology and tools used.

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 Automated Working Papers
Automated working paper packages have been developed which can make the
documenting of audit work much easier. Such programs aid preparation of working
papers, lead schedules, trial balance and the financial statements themselves. These
are automatically cross referenced, adjusted and balanced by the computer.
The advantages of automated working papers are as follows:
 The risk of error is reduced.
 The working papers will be neater and easier to review.
 The time saved will be substantial as adjustments can be made easily to all
working papers, including working papers summarizing the key analytical
information.
 Standard forms do not have to be carried out to audit location.
 Audit working papers can be emailed or faxed for review.
 These days most documents can be scanned and stored electronically rather
than in paper from.

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 Filing Working Papers
An audit file is a file in which the working papers are documented.
Permanent audit file:
Permanent audit file is a file which contains all the permanent information
that requires year to years and is updated every year continuously. Those
are:
 Engagement letter;
 Board minutes;
 New client questionnaires;
 Accounting system notes;
 Memorandum system articles of association; and
 Previous years signed accounts.

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 Filing Working Papers (Cont.……)
Current audit file:
Current audit file is a file which contains information relating to a single
period. Those are:
 Financial Statements
 Account checklists
 Management accounts details
 Reconciliations of management accounts and financial statements
 A summary of unadjusted errors
 Report to partner including details of significant events and errors.
 Review notes
 Audit planning memorandum
 Time budgets and summaries
 Letter of representation
 Management letter
 Notes of board minutes
 Communications with third parties such as experts or other auditors

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 Information to be shown in the working paper
Following information should be shown in the working paper:
The name of the client;
The balance sheet date;
The name of the preparer and date of preparation;
Subject of the working paper;
The name of the reviewer and date of review;
The source of information ;
The results obtained;
Analysis of errors;
Other significant observations;
The conclusion drawn; and
The key points highlighted.

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 Safe custody and retention of documentation procedure
General safe custody and retention of documentation:
Assurance provides should retain documents for a certain period of time. Judgments may
have to be used in holding or destructing them; and
Documents must be kept secure during this period due to confidentiality
requirements;
Safe custody and retention of documentation according to Section 181(5) of
Companies Act 1994:
According to Companies Act 1994, Section 181(5), states that, “The books of accounts of
every company relating to a period of not less than twelve years immediately preceding
the current year together with vouchers relating to any entry in such books of account
shall be preserved in good order”. 
Safe custody and retention of documentation as per ISA 230.13:
The auditor should adopt appropriate procedures for maintaining the confidentiality
and safe custody of the working papers and for retaining them for a period sufficient to
meet the needs of the practice and in accordance with legal and professional
requirements of records retention.

Naima Sultana FCA

 Ownership of and right of access to documentation
The following matters to be in mind in case of ownership of and right of access
to documentation:
Working papers belongs to the assurance providers;
The report , once issued , belongs to the client;
The assurance providers must keep working papers confidential;
They may show working papers to the to the clients at their discretion;
and
They should obtain clients permission before showing working papers to
third parties.
As per ISA 230.14, ownership of and right of access to documentation:
Working papers are properly of the auditor. Although portions of or extracts
from the working papers may be made available to the entity at the discretion
of the auditor, they are not a substitute for the entity’s accounting records.

Naima Sultana FCA

Thank You For Attending This Session

Naima Sultana FCA