ACA Assurance Chapter 5 - The Process
of Gathering Sufficient Appropriate
Evidence
What is audit documentation? - correct answer ✔✔Audit documentation = working papers
A record of procedures performed, relevant evidence obtained and conclusions reached
Why must assurance providers record their work? - correct answer ✔✔In order to:
- Assist the audit team to plan and perform the audit
- Assist relevant members of the team to direct and supervise work
- Enable the audit team to be accountable for its work (and prove adherence to ISAs)
- Retain a record of matters of continuing significance to future audits
- Enable an experienced auditor to carry out quality control retires (QCR)
- Enable an experienced auditor to conduct external inspections in accordance with applicable legal,
regulatory or other requirements
What are the some factors which may impact the form and content of working papers? - correct answer
✔✔- The size and complexity of the entity
- The nature of the audit procedures performed
- The identified risks of material misstatements
, - The significance of audit evidence obtained
- The nature and extent of problems or exceptions identified
- The need to document a conclusion or the basis for a conclusion not readily determinable from the
documentation of the work performed or audit evidence obtained
- The audit methodology and tools used
What key contents should all working papers contain? - correct answer ✔✔- The name of the client
- The year-end date
- The file reference of the working paper
- The name of the person preparing the working paper
- The date the working paper was prepared
- The subject of the working paper
- The name of the person reviewing the working paper
- The date of the review
- The objective of the work done
- The sources of information
- The work done
- A key to any audit ticks or symbols
- The results obtained
- Analysis of errors or other significant observations
- The conclusions drawn
What are the advantages of having automated working papers? - correct answer ✔✔- Working papers
are neater and easier to review (all in one place)
of Gathering Sufficient Appropriate
Evidence
What is audit documentation? - correct answer ✔✔Audit documentation = working papers
A record of procedures performed, relevant evidence obtained and conclusions reached
Why must assurance providers record their work? - correct answer ✔✔In order to:
- Assist the audit team to plan and perform the audit
- Assist relevant members of the team to direct and supervise work
- Enable the audit team to be accountable for its work (and prove adherence to ISAs)
- Retain a record of matters of continuing significance to future audits
- Enable an experienced auditor to carry out quality control retires (QCR)
- Enable an experienced auditor to conduct external inspections in accordance with applicable legal,
regulatory or other requirements
What are the some factors which may impact the form and content of working papers? - correct answer
✔✔- The size and complexity of the entity
- The nature of the audit procedures performed
- The identified risks of material misstatements
, - The significance of audit evidence obtained
- The nature and extent of problems or exceptions identified
- The need to document a conclusion or the basis for a conclusion not readily determinable from the
documentation of the work performed or audit evidence obtained
- The audit methodology and tools used
What key contents should all working papers contain? - correct answer ✔✔- The name of the client
- The year-end date
- The file reference of the working paper
- The name of the person preparing the working paper
- The date the working paper was prepared
- The subject of the working paper
- The name of the person reviewing the working paper
- The date of the review
- The objective of the work done
- The sources of information
- The work done
- A key to any audit ticks or symbols
- The results obtained
- Analysis of errors or other significant observations
- The conclusions drawn
What are the advantages of having automated working papers? - correct answer ✔✔- Working papers
are neater and easier to review (all in one place)
