ICAI revised Implementation Guide and FAQ to SA 230- Audit Documentation
The Auditing and Assurance Standards Board of ICAI has brought out the revised edition of the Implementation Guide to SA 230, “Audit Documentation” which was first released in 2013.
The Implementation Guide has been written in an easy to understand language in the form of 37 Frequently Asked Questions (FAQs) on SA 230 and answers to those FAQs.
Standards on Auditing issued by the Institute of Chartered Accountants of India lay down the fundamental principles of audit to be followed by auditors while conducting audits of financial statements.
The Implementation Guides to Standards on Auditing is important for auditors to understand the requirements of these Standards and also help them in their appropriate implementation. The Guides also provide guidance to various practical problems faced by auditors in implementing Standards on Auditing in real life audit situations.
Documentation is considered the backbone of an audit. The work that the auditor performs, the explanations given to the auditor, the conclusions arrived at, are all evidenced by documentation. Poor documentation may depict poor performance in an audit. The auditor may have executed appropriate audit procedures, however, if there is no documentation to prove, it may put question on the work done, in case any material misstatement is reported. Improper and incomplete documentation, at times, may put the auditor in embarrassing situations.
Documentation is essential because it supports the auditor’s basis for a conclusion about achieving the auditor’s objectives, provides evidence that audit was planned and performed. It supports and evidences compliance with standards, applicable legal & regulatory requirements.