Through its enhanced oversights, the AICPA Peer Review Program has found that one of the most common causes of material non-conformity in audits is a lack of documentation. Peer reviewers will be increasing their emphasis on this area moving forward.
Good documentation enables an experienced auditor to understand
- The nature, timing and extent of procedures performed;
- The results of those procedures and evidence obtained; and
- Any significant findings, issues identified or professional judgments made.
The resources on this page will help your firm address common issues related to documentation.
- Archived Webcast: “The Deeper Dive in Peer Review Audit Review Documentation”: This no-CPE archived webcast examines the requirements of the Audit Documentation standard, common misconceptions that the Peer Review Program has uncovered and how practitioners can avoid them in practice.
- Working Paper Template: This practice aid is intended to help auditors document the results of testing while meeting the requirements of AU-C section 230, Audit Documentation. In addition to a template that can be used in your audits, the aid includes examples of well-documented analytical procedures and detail testing.
- Employee Benefit Plan Audit Quality Center Tool for SOC 1 ™ Consideration: Previously available only to members of the Employee Benefit Plan Audit Quality Center, this tool assists firms in documenting procedures and findings related to controls at a service organization that are likely to be relevant to an employee benefit plan’s internal control over financial reporting. The tool focuses on the auditor’s use of a type 2 report.
- Governmental Audit Quality Center Dual-Purpose Testing Practice Aid: Failure to document dual-purpose testing in a single audit is one of the most common deficiencies identified through Peer Review Enhanced Oversights. This working paper is intended to support compliance with AU-C section 230 by illustrating auditor documentation for a dual-purpose test of compliance and internal control over compliance for several compliance requirements.
- FAQs: Get answers to some of the most common questions the AICPA receives about documentation.
- Internal Inspection Aid: Gear up for your firm’s internal inspection by reviewing this aid, which is designed to support those performing the inspection as they identify and address documentation deficiencies.
- Staff Training: This PowerPoint presentation (with speaker notes) is designed to support firms as they train audit personnel on how to comply with AU-C section 230.
- Nano-learning Segment: Access a brief overview of AU-C section 230, including common misconceptions about audit documentation that have been detected through the AICPA Peer Review Program.
- 4 strategies for efficient, effective audit documentation: Documenting the nature, timing, extent and results of your procedures may seem as if it will break your audit budget, but many practitioners have found that this isn't the case. This Journal of Accountancy article shares tips for performing high-quality work while increasing your efficiency.
- Audit documentation: Tips for getting it right: This Journal of Accountancy article walks through some common misconceptions about audit documentation and how to avoid them.
- Quiz: How well do you know audit documentation requirements?: Test your knowledge of AU-C section 230 with this quiz from the Journal of Accountancy.