Au 00339 PDF
Au 00339 PDF
Au 00339 PDF
AU Section 339
Audit Documentation
(Supersedes SAS No. 96.)
Introduction
.01 The purpose of this section is to establish standards and provide guid-
ance on audit documentation. The exercise of professional judgment is integral
in applying the provisions of this section. For example, professional judgment
is used in determining the quantity, type, and content of audit documentation
consistent with this section.
.02 Other Statement on Auditing Standards contain specific documen-
tation requirements (see appendix A [paragraph .36]). Additionally, specific
documentation or document retention requirements may be included in other
standards (for example, government auditing standards), laws, and regulations
applicable to the engagement.
.03 The auditor must prepare audit documentation in connection with
each engagement in sufficient detail to provide a clear understanding of the
work performed (including the nature, timing, extent, and results of audit pro-
cedures performed), the audit evidence obtained and its source, and the conclu-
sions reached. Audit documentation:
a. Provides the principal support for the representation in the auditor's
report that the auditor performed the audit in accordance with gener-
ally accepted auditing standards.
b. Provides the principal support for the opinion expressed regarding
the financial information or the assertion to the effect that an opinion
cannot be expressed.
.04 Audit documentation is an essential element of audit quality. Although
documentation alone does not guarantee audit quality, the process of preparing
sufficient and appropriate documentation contributes to the quality of an audit.
.05 Audit documentation is the record of audit procedures performed, rel-
evant audit evidence obtained, and conclusions the auditor reached. Audit doc-
umentation, also known as working papers or workpapers, may be recorded on
paper or on electronic or other media. When transferring or copying paper doc-
umentation to another media, the auditor should apply procedures to generate
a copy that is faithful in form and content to the original paper document.1
1
There may be legal, regulatory, or other reasons to retain the original paper document.
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2
See paragraph .05 of section 311, Planning and Supervision, as amended, for guidance regarding
preparation of audit programs.
3
The audit documentation contained within the audit file may consist of cross-references to
documentation for audit engagements with related entities. For example, the documentation for an
audit of the financial statements of an employee benefit plan may consist partly of cross-references
to the documentation of dual-purpose payroll-related tests performed in connection with the audit of
the financial statements of the plan's sponsor.
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Audit Documentation 2031
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2032 The Standards of Field Work
4
See paragraphs .34b and .39 of section 380, The Auditor's Communication With Those Charged
With Governance, for guidance regarding communication with those charged with governance of any
serious difficulties encountered in dealing with management related to the performance of the audit.
[Footnote revised, February 2008, to reflect conforming changes necessary due to the effective date of
Statement on Auditing Standards No. 114.]
5
The term those charged with governance means the person(s) with responsibility for overseeing
the strategic direction of the entity and obligations related to the accountability of the entity. This
includes overseeing the financial reporting and disclosure process. In some cases, those charged with
governance are responsible for approving the financial statements (in other cases, management has
this responsibility). For entities with a board of directors, this term encompasses the term board of
directors or audit committees expressed elsewhere in the Statements on Auditing Standards.
AU 339.15
Audit Documentation 2033
b. Who reviewed specific audit documentation and the date of such re-
view.
.19 The requirement to document who reviewed the audit work performed
does not imply a need for each specific working paper to include evidence of
review. It should be clear from the audit documentation who reviewed specified
elements of the audit work performed and when.
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2034 The Standards of Field Work
When and by whom such changes were made and (where applicable)
reviewed;
6
In many cases, the report release date will be the date the auditor delivers the audit report to
the entity.
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Audit Documentation 2035
.28 At anytime prior to the documentation completion date, the auditor
may make changes to the audit documentation to:
a. Complete the documentation and assembly of audit evidence that the
auditor has obtained, discussed, and agreed with relevant members of
the audit team prior to the date of the auditor's report;
b. Perform routine file-assembling procedures such as deleting or dis-
carding superseded documentation and sorting, collating, and cross-
referencing final working papers;
c. Sign off on file completion checklists prior to completing and archiving
the audit file; and
d. Add information received after the date of the auditor's report, for
example, an original confirmation that was previously faxed.
.29 The report release date should be recorded in the audit documentation.
7
Also, see Rule 301, Confidential Client Information.
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2036 The Standards of Field Work
b. Protect the integrity of the information at all stages of the audit, espe-
cially when the information is shared within the audit team or trans-
mitted to other parties via electronic means;
c. Prevent unauthorized changes to the documentation; and
d. Allow access to the documentation by the audit team and other autho-
rized parties as necessary to properly discharge their responsibilities.
Effective Date
.35 This section is effective for audits of financial statements for periods
ending on or after December 15, 2006. Earlier application is permitted.
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Audit Documentation 2037
.36
Appendix A
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AU 339.36
Audit Documentation 2039
l. Paragraph .18 of section 341, The Auditor's Consideration of an
Entity's Ability to Continue as a Going Concern, to document (a)
the conditions or events that led him or her to believe that there is
substantial doubt about the entity's ability to continue as a going
concern; (b) the work performed in connection with the auditor's
evaluation of management's plans; (c) the auditor's conclusion as
to whether substantial doubt about the entity's ability to continue
as a going concern for a reasonable period of time remains or is
alleviated; and (d) the consideration and effect of that conclusion
on the financial statements, disclosures, and the audit report.
m. Paragraph .64 of section 380, The Auditor's Communication With
Those Charged With Governance, to document any matters that
have been communicated orally. When matters have been commu-
nicated in writing, the auditor should retain a copy of the com-
munication.
n. Paragraph .29 of section 330, The Confirmation Process, to docu-
ment oral confirmations. Also, when the auditor has not requested
confirmations in the examination of accounts receivable, this sec-
tion does not change the requirement in paragraph .35 of section
330 to document how the auditor overcame this presumption.
o. Paragraphs .39.42 of section 801, Compliance Audits, to docu-
ment (a) the risk assessment procedures performed, including
those related to gaining an understanding of internal control over
compliance; (b) the auditor's responses to the assessed risks of
material noncompliance, the procedures performed to test com-
pliance with the applicable compliance requirements, and the
results of those procedures, including any tests of controls over
compliance; (c) materiality levels and the basis on which they
were determined; and (d) how the auditor complied with the spe-
cific governmental audit requirements that are supplementary to
GAAS and Government Auditing Standards.
p. Section 333, Management Representations, to obtain written rep-
resentations from management.
q. Section 316, Consideration of Fraud in a Financial Statement Au-
dit, to document (a) the discussion among engagement personnel
in planning the audit regarding the susceptibility of the entity's fi-
nancial statements to material misstatement due to fraud, includ-
ing how and when the discussion occurred, the audit team mem-
bers who participated, and the subject matter discussed; (b) the
procedures performed to obtain information necessary to identify
and assess the risks of material misstatement due to fraud; (c) spe-
cific risks of material misstatement due to fraud that were iden-
tified and a description of the auditor's response to those risks;
(d) if the auditor has not identified in a particular circumstance
improper revenue recognition as a risk of material misstatement
due to fraud, the reasons supporting the auditor's conclusion; (e)
the results of the procedures performed to further address the
risk of management override of controls; (f) other conditions and
analytical relationships that caused the auditor to believe that
additional auditing procedures or other responses were required
and any further responses the auditor concluded were appropri-
ate to address such risks or other conditions; and (g) the nature of
the communications about fraud made to management, the audit
committee, and others.
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AU 339.36
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