Question

18. Explain the sense of documentation keeping
19. Explain content of final audit rapport

Answer 1

Hello,

The sense of Audit Documentation Keeping and Contents of Final Audit Report can be understood briefly from the following:

18. Explain the sense of documentation keeping?

**Audit Documentation: Audit documentation refers to the records or documentation of procedures that auditors performed, the audit evidence that they obtained and the conclusion that makes by them based on the evidence obtained. Audit documentation is sometimes called audit working paper or working paper.

**key Information: 1.The nature of the Information or Data collected by the auditor.

2. Name of the auditor who prepares audit working papers

3. The extent of the audit procedures performed to comply with the ISAs and applicable legal and regulatory requirements.

4. The evidence that auditor obtains, the procedures that they use for testing and the result of testing should properly and clearly document in the audit working papers. This is to ensure that the reviewer could easily perform the quality review and to prove that the relevant standards are implementing.

5. During an audit, the auditor might found the significant mater related to financial statements, their ethics, as well as their process. The auditor should clearly document these things.

6. Some testing or sampling require auditor use their professional judgment and its importance to documents those judgments.

**Objective or Sense of Audit Documentation:

1. Before the auditor could make a conclusion on financial statements whether those financial statements are free from material misstatement or they contain the misstatement, the auditor needs to make sure that they have enough evidence to support their conclusion.

2. Enough evidence here is sometimes called sufficient and appropriate evidence. Therefore, audit documentation is important for the success of audit works.

3. It provides evidence of the auditor’s basis for a conclusion about the achievement of the overall objective.

4. It provides evidence that the audit was planned and performed in accordance with ISAs and other legal and regulatory requirements.

5. It assists the engagement team to plan and perform the audit.

6. It assists team members responsible for supervision to direct, supervise and review audit work.

7. It enables the team to be accountable for its work.

8. It allows a record of matters of continuing significance to be retained.

9. It enables the conduct of quality control reviews and inspections (both internal and external).

19. Explain content of Final Audit Report?

**Basic Content of an Audit Report: An audit report is an opinion on the financial statements of the Company given by the Auditors after conducting the financial audit of the Company. The Auditor’s report is published with the Annual report of the Company. Auditors report is read by investors, analysts, Company’s management, lenders while analyzing the Companies performance and ascertaining that the financial reports are as per the generally accepted accounting standards.

**Audit Report Contents:

1.Title

2.Addresse

3.The Responsibility of the auditor and the management of the company

4.The Scope of the audit

5.The Opinion of the auditor

6.Basis of opinion

7.Signature of the auditor

8.Place of signature

9.date of the audit report

10.Date of signature

**For examples of the best representation of the audit report formats you can view the Big 4 Audit reports.

Thank You...