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Audit_Documentation_File_Specimen

The document outlines the audit documentation for XYZ Ltd. for the year ended March 31, 2024, detailing client information, engagement letter, audit plan, materiality calculations, and evidence gathered. It includes sections on internal control evaluation, analytical procedures, and correspondence with the client, culminating in a final audit report summarizing findings and opinions. The document serves as a comprehensive guide to the audit process and the associated documentation.

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4 views

Audit_Documentation_File_Specimen

The document outlines the audit documentation for XYZ Ltd. for the year ended March 31, 2024, detailing client information, engagement letter, audit plan, materiality calculations, and evidence gathered. It includes sections on internal control evaluation, analytical procedures, and correspondence with the client, culminating in a final audit report summarizing findings and opinions. The document serves as a comprehensive guide to the audit process and the associated documentation.

Uploaded by

ayushanjha.2245
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Audit Documentation File - Specimen

1. Client Information

- Client Name: XYZ Ltd.

- Year Ended: 31st March 2024

- Audit Period: 1st April 2023 - 31st March 2024

- Auditor in Charge: ABC Audit Firm

2. Engagement Letter

- Signed engagement letter confirming the scope, terms, and responsibilities of the audit.

3. Audit Plan and Strategy

- Objective: Overview of audit objectives.

- Risk Assessment: Identified risks related to material misstatements.

- Audit Strategy: General plan of audit procedures, staffing, timeline, and resource allocation.

- Audit Program: List of detailed steps and procedures for each audit area.

4. Materiality Calculation

- Explanation of how materiality is determined.

- Calculations showing materiality thresholds.

5. Trial Balance and Adjustments

- Initial Trial Balance: Provided by the client.

- Adjusting Entries: Documentation of any adjustments identified during the audit.

6. Lead Schedules
- Overview of financial statement items like assets, liabilities, revenues, and expenses, linked to

the detailed audit work performed.

- Example Lead Schedule:

- Cash and Cash Equivalents: $500,000 (Verified via bank reconciliation and confirmation).

- Accounts Receivable: $700,000 (Aged analysis reviewed and confirmed with customers).

- Accounts Payable: $300,000 (Confirmation sent to suppliers).

7. Audit Evidence

- Cash and Bank:

- Bank reconciliation statement.

- Bank confirmation letter.

- Inventory:

- Inventory count observation.

- Inventory valuation records.

- Accounts Receivable:

- Confirmation of outstanding balances with major customers.

- Aging analysis of debtors.

- Fixed Assets:

- Inspection reports of physical assets.

- Verification of depreciation calculations.

8. Analytical Procedures

- Comparison of current year financial data with prior year.

- Ratio analysis: liquidity ratios, profitability ratios, etc.

- Variance analysis: Investigating major fluctuations.


9. Internal Control Evaluation

- Assessment of internal controls in place.

- Walkthrough of key controls over financial reporting.

- Testing of internal controls for effectiveness.

10. Audit Conclusion

- Summary of Audit Findings: Major discrepancies or issues.

- Management Representation Letter: Acknowledgement of responsibility by management.

- Audit Opinion: Draft of the audit opinion.

11. Correspondence with Client

- Copies of emails, letters, and other communications regarding audit issues.

12. Audit Working Papers Index

- Complete index of working papers, providing references to all detailed audit documentation.

13. Audit Report

- Final audit report issued to the client summarizing the audit process and opinion.

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