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      The engagement partner is responsible for the direction, supervision, and performance of the engagement with compliance with GAAS and the appropriateness of the report, performance of reviews, and that sufficient appropriate evidence has been obtained. (AU-C220.17)

      The auditor with final responsibility for the audit should inform members of the engagement team about:

      Supervision includes:

      Engagement Performance

      Reviewing Work

      The engagement partners are responsible for the reviews following the firm's policies and procedures. In order to be sure that they are satisfied that the audit audience is sufficient and appropriate to support the conclusion, the engagement partners should review the audit documentation and discuss the engagement with the auditor. Then, this should be done on or before the date of the auditor's report. (AU-C 220.18-19)

      The suitably experienced auditors should review the work of each team member and consider if:

      The engagement partner's review should allow time to resolve issues. (AU-C 220.A17)

      Difference of Opinion

      If differences of opinion arise among firm personnel about accounting or auditing issues in an audit, there should be:

      Assignment of Engagement Teams

      When evaluating the competence of the engagement team, the engagement partner may consider:

      Personnel should have experience in similar engagements through training and participation. Policies and procedures should also provide reasonable assurance that personnel refer to authoritative literature and consult, on a timely basis, with appropriate individuals when dealing with complex, unusual, or unfamiliar issues. (AU-C 220.A10)

      Monitoring

      The audit firm must establish a monitoring process. Policies and procedures should provide reasonable assurance that the above elements of quality control are suitably designed and effectively applied. (AU-C 220.A32) Monitoring involves:

      AU-C 230 AUDIT DOCUMENTATION

      AU-C Original Pronouncements

      AU-C 230 Definitions of Terms

      Source: AU-C 230.06

      Audit documentation. The record of audit procedures performed, relevant audit evidence obtained, and conclusions the auditor reached (terms such as working papers or workpapers are also sometimes used).

      Audit file. One or more folders or other storage media, in physical or electronic form, containing the records that constitute the audit documentation for a specific engagement.

      Documentation completion date. The date, no later than 60 days following the report release date, on which the auditor has assembled for retention a complete and final set of documentation in an audit file.

      Experienced auditor. An individual (whether internal or external to the firm) who has practical audit experience and a reasonable understanding of:

      1. Audit processes;

      2. GAAS and applicable legal and regulatory requirements;

      3. The business environment in which the entity operates; and

      4. Auditing and financial reporting issues relevant to the entity's industry.

      Report release date. The date the auditor grants the entity permission to use the auditor's report in connection with the financial statements.

      Objectives of AU-C Section 230

      AU-C Section 230.05 states that:

      …the objective of the auditor is to prepare documentation that provides

      a. a sufficient and appropriate record of the basis for the auditor's report; and

      b. evidence that the audit was planned and performed in accordance with GAAS and applicable legal and regulatory requirements.

      Requirements

      Requirement for Audit Documentation

      The auditor must prepare audit documentation, on a timely basis, in sufficient detail to provide a clear understanding of:

      ● The work performed, including the nature, timing, extent, and results of audit procedures performed;

      ● The evidence obtained and its source, and the conclusions reached; and

      ● The fact that the audit was planned and performed in accordance with GAAS and relevant legal and regulatory requirements.

      (AU-C 230.02)

      The form and content of the audit documentation should be designed for the specific engagement.

      Form, Content, and Extent of Audit Documentation

      The quantity, type, and content of the audit documentation are based on the auditor's professional judgment and vary with the engagement. Factors to consider in determining the content of audit documentation are discussed in the following paragraphs.

      The Audience

      The auditor should prepare audit documentation that would allow an experienced auditor8 having

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