Auditing - Importance of Documentation | 11th Auditing : Chapter 5 : Documentation
Chapter: 11th Auditing : Chapter 5 : Documentation
Importance of Documentation
Importance of Documentation
Documentation is important in the course of audit
work due to the following:
1. Fixation of
Responsibility and
Accountability: Documentation helps in determining and fixation of
responsibility among the audit staff. It further creates accountability for the
work performed by the audit staff.
2. Permanent
Record: Documentation is a permanent
record, it acts as a manual for reference for planning the audit for future and
also in similar types of new audit engagements.
3. Documentary
Record: Documentation acts as
documentary evidence when a charge of negligence is charged against the
auditor.
4. Helps
in Preparing Audit Report: Adequately
documented plan and control of audit work evidences the practices, procedures
followed in audit and important things. It further helps in preparation of
audit report.
SA-230 on Audit Documentation issued by ICAI state the factors
that determine Audit Documentation
The size and complexity of the
entity.
Nature of audit procedures to be
performed.
The identified risks of material
misstatement.
The significance of the audit
evidence obtained.
The audit methodology and tools used.
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