CPA Audit Exam Review

Documentation Completion Date Deadline

Nonissuer

Issuer

Nonissuer- 60 days

Issuer- 45 days 

Keep workpapers for how many years?

Nonissuer

Issuer

Nonissuer- 5 years

Issuer- 7 years

Not required documentation

A narrative description of I.C. system. 

AD Current File Examples

Bank Recon

Working Trial Balance

Bank Statements

Attorney Letters for CY

Lead Schedules

AD=

Standard of fieldwork

Sufficient to enable member of the A team with supervisory responsibility to understand NTE and results of auditing procedures performed.

Should indicate which member of the audit team performed and reviewed auditor work

AD Permanent File Examples

Pension plan contract

Articles of Incorporation 

Flowchart of the IC

Lease Agreement

Bond Indentured Agreement

Debt Agreement

Minutes of the Board

Report Release Date vs. Documentation Completion Date

RRD= 

Retention period starts,

Date A grants permission to use report

Date often delivered to client

DCD=

After this date existing documents must not be deleted

additions to audit documents  must be documents

Audit documentation should:

Show that the accounting records agree or reconcile with the f.s.

Audit documentation is NOT support for the f.s.

AD  does not equal

Quality Control

Working trial balance=

Reclassification and adjustments

Required documentation examples:

A written audit program

Engagement letter

Auditor assessment of the risk of MM

F.S and auditor's report

Working trial balance and AJEs

Letter of Confirmation and Representation

Documentation Completion Date

No deletions to audit documentation before end of the specified retention period.