Auditing & Assurance Services 6th Edition by Timothy Louwers

Exercise 62

Audit Documentation. The preparation of audit documentation is an integral part of an auditor's examination of financial statements. On a recurring engagement, auditors review the audit plans and audit documentation from the prior audit while planning the current audit to determine their usefulness for the current-year work.
Required:
a. (1) What are the purposes or functions of audit documentation?
(2) What records may be included in audit documentation?
b. What factors affect the auditors' judgment of the type and content of the audit documentation for a particular engagement?
c. What should be included in audit documentation to support auditors' compliance with generally accepted auditing standards?
d. How can auditors make the most effective use of the prior-year audit plans in a recurring audit?