explain SA 230

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 prashant soni asked over 3 years ago

info.me about SA 230: Audit Documentation in short

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6 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Ashika answered almost 3 years ago

SA 230 is regarding Audit Documentation its name as given by icai is ****SA 230: Audit Documentation**** and provision regarding this SA is as under.... Audit documentation that meets the requirements of this SA and the specific documentation requirements of other relevant SAs provides (a) evidence of auditor’s basis for a conclusion about the achievement of overall objective of audit; and (b) evidence that the audit was planned and performed in accordance with SAs and applicable legal and regulatory requirements. and Audit Documentation refers to the record of audit procedures performed, relevant audit evidence obtained, and conclusions the auditor reached. Preparing sufficient and appropriate audit documentation on a timely basis helps to enhance the quality of audit and facilitates effective review and evaluation of audit evidence obtained and conclusions reached before finalizing auditor’s report. To document discussions of significant matters with management, those charged with governance, and others, including the nature of significant matters discussed and when and with whom the discussions took place. and Auditor may consider preparing and retaining a summary (Completion Memorandum) that describes significant matters identified during the audit and how they were addressed. SA 220 requires auditor to review audit work performed through review of audit documentation. Standards on Quality Control (SQC) 1 require firms to establish policies and procedures for timely completion of assembly of audit files. An appropriate time limit within which to complete the assembly of final audit file is ordinarily not more than 60 days after the date of auditor’s report. SQC 1 requires firms to establish policies and procedures for retention of engagement documentation.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 CA Sandeep Bohra answered about 3 years ago

> SA 230 Audit Documentation (Revised) Scope of this SA - This SA deals with the auditor’s responsibility to prepare audit documentation for an audit of financial statements. It is to be adapted as necessary in the circumstances when applied to audits of other historical financial information. -The specific documentation requirements of other SAs do not limit the application of this SA. Laws or regulations may establish additional documentation requirements. Nature and Purposes of Audit Documentation -Audit documentation that meets the requirements of this SA and the specific documentation requirements of other relevant SAs provides: (a) Evidence of the auditor’s basis for a conclusion about the achievement of the overall objectives of the auditor; and (b) Evidence that the audit was planned and performed in accordance with SAs and applicable legal and regulatory requirements. -Assisting the engagement team to plan and perform the audit. -Assisting members of the engagement team responsible for supervision to direct and supervise the audit work, and to discharge their review responsibilities in accordance with SA 220. -Enabling the engagement team to be accountable for its work. -Retaining a record of matters of continuing significance to future audits. -Enabling the conduct of quality control reviews and inspections in accordance with SQC 14 -Enabling the conduct of external inspections in accordance with applicable legal, regulatory or other requirements. Objective 5. The objective of the auditor is to prepare documentation that provides: (a) A sufficient and appropriate record of the basis for the auditor’s report; and (b) Evidence that the audit was planned and performed in accordance with SAs and applicable legal and regulatory requirements. Form, Content and Extent of Audit Documentation The auditor shall prepare audit documentation that is sufficient to enable an experienced auditor, having no previous connection with the audit, to understand: (a) The nature, timing, and extent of the audit procedures performed to comply with the SAs and applicable legal and regulatory requirements; (b) The results of the audit procedures performed, and the audit evidence obtained; and (c) Significant matters arising during the audit, the conclusions reached thereon, and significant professional judgments made in reaching those conclusions. Departure from a Relevant Requirement - If, in exceptional circumstances, the auditor judges it necessary to depart from a relevant requirement in a SA, the auditor shall document how the alternative audit procedures performed achieve the aim of that requirement, and the reasons for the departure.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 shruthi answered about 3 years ago

HI PRASHANT SONI, **SA 230 AUDIT DOCUMENTATION**` audit documentation is a recordof audit procedures performed relavantaudit evidence obtained and conclusions reached by the auditor. commonly these papers are known as working papers **form and content of working papers** a)nature , timing and extent of audit procedures to perform and audit evidence obtained b)significant auditconclusion reached by auditors c) who performed/ reviewed which audit work and date ofcompletion review( audit programme) d)how the inconsistent information where addressed(query sheet) factors determining form and content of working papers a)nature of clients business b)reliance on internal control system c)terms of engagement d)need to direct , supervise and review work of assistants advantage/ purpose/importance of working paper a)working paper acts as **evidence** of audit work performed b)working papers assistin **planning and performance** off audit c)working papers assist in **supervision and review** of audit d)working papers sreves the purpose of **future reference** clarification issued by ICAI regarding **ownership and sharing** of working papers a)workingpapers are the property of the auditor sohe should take propersteps for its safe custody b)the auditor may make certain portion /extract of his working papers available to client but only on his own discertion i.e.he is not under any obligation to share working papers with anybody else all the best

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Open uri20170510 32134 tcchcu?1494421832 Jitendra Suthar answered over 3 years ago

Hiiii friend..... **SA-230 - Audit Documentation** 1. This Standard on Auditing (SA) deals with the auditor’s responsibility to prepare audit documentation for an audit of financial statements. It is to be adapted as necessary in the circumstances when applied to audits of other historical financial information. The specific documentation requirements of other SAs do not limit the application of this SA. Laws or regulations may establish additional documentation requirements. Nature and Purposes of Audit Documentation 2. Audit documentation that meets the requirements of this SA and the specific documentation requirements of other relevant SAs provides: (a) Evidence of the auditor’s basis for a conclusion about the achievement of the overall objectives of the auditor; and (b) Evidence that the audit was planned and performed in accordance with SAs and applicable legal and regulatory requirements. 3. Audit documentation serves a number of additional purposes, including the following:  Assisting the engagement team to plan and perform the audit.  Assisting members of the engagement team responsible for supervision to direct and supervise the audit work, and to discharge their review responsibilities in accordance with SA 220.  Enabling the engagement team to be accountable for its work.  Retaining a record of matters of continuing significance to future audits.  Enabling the conduct of quality control reviews and inspections in accordance with SQC 14  Enabling the conduct of external inspections in accordance with applicable legal, regulatory or other requirements. Thanks & Regards,

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Data?1494421730 rohit awasthi answered over 3 years ago

Dear Friend > SA – 230 Audit Documentation Objective of Standard The objective of the auditor is to prepare documentation that provides --Sufficient and appropriate record of the basis, for auditors report and --Evidence that the audit was planned and performed in accordance with SAs and applicable legal and regulatory requirements Requirements Timely Preparation of Audit Documentation Documentation of Audit procedure performed and Audit Evidence obtained --Form, content Extent of Audit Documentation --Matters Arising after the date of Auditors Report Assembly of Final Audit File Requirement – Documentation 1. Form, Content, Extent of Audit Documentation --Auditor Shall prepare audit document that is sufficient to understand -----The nature, timing extent of audit procedure -----Result of Audit procedure performed -----Audit evidence obtained -----Significant matters arising during the audit -----Conclusions reached thereon -----Professional Judgment made in reaching those conclusions --Identification of specific items --Matter tested --Who performed the audit work --Date of work completed --Who review the audit work --Extent of review --Discussion of significant matters with management 2. Matters Arising after date of Auditors Report Circumstance encountered New or additional procedure performed Audit evidence obtained Conclusions reached When & by whom the resulting changes were made 3. Form & Contents depends on  Size and complexity of entity Nature of audit procedure performed Significance of audit evidence Nature and extent of exceptions identified Audit methodology and tools used 4. Documentation includes Audit programmes Analyses Letter of confirmation & representation Checklists Correspondences (e-mail) Abstracts or copies of entity’s records (agreements) Need not include superseded drafts Audit documentation provides evidence that the audit complies with SA. However it is neither necessary nor practicable to document every matter considered, or judgment made, in an audit. Requirement – Assembly of Audit File Auditor Shall --Complete the administrative process on timely basis --Auditor shall not delete or discard audit documentation before the end of retention period (7 years) Thanks

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Open uri20170510 32134 s5bvk0?1494421637 ARJUN PRATAP SINGH answered over 3 years ago

Dear prashant ji soni, SA 230 is regarding Audit Documentation its name as given by icai is ****SA 230: Audit Documentation**** and provision regarding this SA is as under.... Audit documentation that meets the requirements of this SA and the specific documentation requirements of other relevant SAs provides (a) evidence of auditor’s basis for a conclusion about the achievement of overall objective of audit; and (b) evidence that the audit was planned and performed in accordance with SAs and applicable legal and regulatory requirements. and Audit Documentation refers to the record of audit procedures performed, relevant audit evidence obtained, and conclusions the auditor reached. Preparing sufficient and appropriate audit documentation on a timely basis helps to enhance the quality of audit and facilitates effective review and evaluation of audit evidence obtained and conclusions reached before finalizing auditor’s report. To document discussions of significant matters with management, those charged with governance, and others, including the nature of significant matters discussed and when and with whom the discussions took place. and Auditor may consider preparing and retaining a summary (Completion Memorandum) that describes significant matters identified during the audit and how they were addressed. SA 220 requires auditor to review audit work performed through review of audit documentation. Standards on Quality Control (SQC) 1 require firms to establish policies and procedures for timely completion of assembly of audit files. An appropriate time limit within which to complete the assembly of final audit file is ordinarily not more than 60 days after the date of auditor’s report. SQC 1 requires firms to establish policies and procedures for retention of engagement documentation. **Retention period** Retention period for audit engagements ordinarily is no shorter than ten years from the date of auditor’s report, or, if later, the date of group auditor’s report Regards, APS

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