Review Green and Brown, LLP’s audit documentation guidelines and explain why an audit firm would want to include each of the listed items in its audit documentation.
What will be an ideal response?
The guidelines provided provide the following benefits:
Title - Having a proper title helps individuals reviewing the schedule to quickly identify the client and
schedule purpose.
Source - Clearly identifying the source of a schedule helps to insure that appropriate testing of client
prepared documents occurs and facilitates planning for the next audit period.
Work Performed - Clearly identifying who performed the work facilitates determination of follow-up
questions that arise as well as planning for the next audit period.
Indexing – Using a logical referencing system facilitates filing for later review as well as cross-
referencing information between schedules.
Cross-referencing – Linking information between schedules/documents facilitates review of the work
done and ensures that the reported information is adequately supported by evidence documented in
the audit files.
Tickmark – Providing explanations of the meaning of tickmark insures that the specific work performed
is clearly documented.
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Indicate whether the statement is true or false
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Fill in the blank(s) with the appropriate word(s).