Audit Documentation – Key Vocabulary

Vocabulary flashcards covering core terms, requirements, and concepts related to audit documentation.

Audit Documentation

The record of audit procedures performed, relevant audit evidence obtained, and conclusions reached by the auditor.

Purpose of Audit Documentation

To assist planning and supervision, provide evidence of audit work and accountability, and form a basis for future audits (not for marketing purposes).

Audit Procedures

Specific tests, inquiries, and analyses performed by the auditor to gather sufficient appropriate evidence.

Audit Evidence

Information used by the auditor to draw conclusions on which the audit opinion is based; captured and stored within audit documentation.

Audit Conclusions

The auditor’s evaluated results and final judgments about the financial statements, documented to support the audit opinion.

SQC 1 Retention Requirement

Audit documentation must be retained for at least 7 years from the date of the auditor’s report, as required by Standard on Quality Control 1 (SQC 1).

Final Audit File Assembly Period

The auditor must assemble the complete and final audit file within 60 days after the date of the auditor’s report.

Ownership of Audit Documentation

Audit documentation is the property of the auditor, not the client, government, or individual staff members.

Completion Memorandum

A summary document describing significant matters identified during the audit and how they were resolved.

Audit File

The physical or electronic folder that contains all audit documentation for a specific engagement.

Factors Affecting Extent of Documentation

Include entity size, significance of evidence, and risks of material misstatement; personal interests of the auditor are not a valid factor.

Items Excluded from Audit Documentation

Drafts corrected for typos and superseded versions are not retained; significant correspondence, checklists, and issues memoranda are included.