Rules on audit documentation get international treatment
ISA 230 establishes new ground rules on preparing the audit file
The Auditing Practices Board has released a new audit standard that
establishes the auditor’s responsibility in relation to the preparation of
documentation.
ISA 230, which is effective for audits of accounts for periods beginning 15
June 2006 and onwards, requires the auditor to prepare documentation so that an
experienced auditor with no connection to the audit would be able to understand
the work that had been carried out, the evidence obtained, the significant
matters arising during the audit and the conclusions reached.
The standard also establishes responsibilities for the auditor to assemble
the final audit file on a timely basis, with additional requirements on
additions, deletions or modifications after the report has been dated.