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“Audit planning documentation should include the risk assessment cross-referenced to the audit program, and the audit program should cross-reference to the audit working papers.”
Ma’am could you explain the relevance of the above paragraph? what exactly is an audit programme? why is it cross-referenced from both ends?
Many thanks!
(sorry ma’am can’t call you just ‘Kim’ i feel it will be very disrespectful on my part to do so)The “audit plan” is the “overarching” audit documentation – everything else is related to to it.
So, for example, the audit plan documents that there is a high risk of misstatement in trade receivables because the credit controller is on long-term sick leave. So final audit procedures are planned to include external confirmation (“circularisation”) and other tests of details (e.g. on after-date cash receipts). Think of the audit programme as an audit checklist – do this – do that.
I would say most if not all audit documentation (“working papers”) are cross-referenced “from both ends” – i.e. why they are there/where they go to. This is certainly going to help the next level of review – audit manager/audit partner/EQCR to navigate their way through the audit documentation to the things that are most important to their review.
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