Topic 13

'Work papers' is another term used by auditors to describe some types of audit documentation.

true. The term work papers, or working papers is a common term describing some types of the auditor's documentation.

PCAOB standards require that the auditor compile a completed set of audit documentation within _________ days following the report release date.

45 PCAOB standards allow the auditor 45 days to compile a completed set of audit documentation following the report release date.

ASB and IAASB auditing standards allow the auditor ______ days following the report release date to compile a completed set of audit documentation.

60 ASB and IAASB standards allow the auditor 60 days following the report release date to compile a completed set of audit documentation.

PCAOB standards require that the auditor retain audit documentation for _______ years from the report release date, while ASB and IAASB standards require audit documentation to be retained for _______ years from the report release date.

7, 5 PCAOB standards require that documentation be retained for 7 years following the report release date, while ASB and IAASB standards require that documentation be retained for 5 years.

The primary source of review of audit documentation comes from outside of the auditing firm, with little review occurring from within the firm itself.

False This statement is false. While there are many sources of potential review of audit work outside of the firm, most auditing firms have many layers of review within the firm to ensure accuracy, adequacy, professionalism, and compliance with regulation and firm policy.

What RE the purposes of audit documentation?

Provide support for the conclusions reached by the auditor Provide evidence that the audit was carried out in accordance with GAAS Facilitate the planning, performance, and supervision of the audit engagement Serves as the basis for review of the work performed

Each of the following is a potential source of review of audit documentation except:

Reviews by other clients to decide whether to hire the auditor Other audit clients do not have access to audit documentation since it contains confidential client information.

Auditors should document an understanding of clients internal controls through methods such as flowcharts or narratives.

True

Audit documentation is meant to provide support for conclusions drawn by the auditor, to provide evidence that the audit was performed in compliance with GAAS, and facilitates the planning, performance, and supervision of the engagement as well as the review of the quality of work.

True Each of these four purposes of audit documentation is listed in Auditing Standard Number 3.

In addition to providing documentation regarding the factors that support their conclusions, the auditor should document evidence that contradicts their final decision as well as how the auditor resolved the conflict.

True This statement is true. Auditors should document both supporting evidence as well as any evidence that they found that contradicted their ultimate decision along with how they resolved the conflict between the two sets of evidence.

An audit program is a form of audit documentation that provides evidence that the audit was planned and that the necessary audit steps were performed.

True This statement is true. The audit program indicates the steps to be taken in the audit. As such, it provides evidence that the audit was properly planned and that it was carried out.

One benefit of audit documentation is to provide a defense to the auditor in lawsuits where it is alleged that the auditor did not comply with GAAS.

True This statement is true. When an auditor is sued for negligence, their audit documentation can provide evidence that their work was performed in compliance with GAAS.

A 'concurring partner' is a partner in a different firm that reviews the work of the audit team assigned to the audit engagement.

false. A concurring partner comes from within the same audit firm that is conducting the audit.

Audit documentation should include information regarding who performed the audit work, and it is recommended, but not necessary to indicate the date it was performed or who reviewed the work.

false. It is necessary to document who performed the work, when they performed it, who reviewed the work, and when it was reviewed.