Audit documentation definition
/What is Audit Documentation?
Audit documentation is the record of procedures performed, evidence obtained, and conclusions reached as part of an audit.
Why Audit Documentation is Needed
The proper preparation of audit documentation is critical for several reasons, including the following:
It can be used as a defense if the auditor is ever accused of negligence.
It is easier for a reviewer to examine.
It represents a better level of quality control over an audit.
It shows auditors in later years how the audit was conducted.
It can be used as a training tool for junior auditors.
Types of Audit Documentation
The types of audit documentation that should be assembled include the following:
Analyses conducted
Checklists
Confirmation letters (can apply to all types of confirmations, including bank, loan, and consigned inventory confirmations)
Documentation of physical counts observed (can apply to both inventory and fixed asset counts)
Memoranda and correspondence regarding issues found
Records of oral interviews
Representation letters
Summaries of significant findings
In the interests of keeping the audit documentation down to a manageable length, it is not necessary to include corrected copies, duplicates, notes regarding preliminary conclusions, and superseded drafts.
Terms Similar to Audit Documentation
Audit documentation is also referred to as audit working papers.