7-46 The audit documentation represents the auditor’s accumulation of evidence and conclusions

7-46
The audit documentation represents the auditor’s accumulation of
evidence and conclusions reached on an audit engagement. Prior-year
audit documentation can provide insight into an audit engagement that
will be useful in planning the current year audit.

Required.
a. What are the purposes or primary functions of an audit documentation?
b. Who owns the documentation, the auditor or the client?
c. What important planning information might an auditor learn when reviewing the prior-year audit documentation of a client?
d.
The auditor often requests the client to prepare a schedule, such as a
schedule listing all repair and maintenance expenses over $5,000 for the
past year. Assume that the client asks for a copy of the previous
year’s documentation to the client.
1. Is it permissible to provide
the client copies of the auditors previous documentation? If so, are
there any particular conditions the auditor should examine before
furnishing the documentation to the client?
2. What procedures should the auditor use to assure that the client has properly prepared the requested documentation?