Jennifer Jones is reading the documents prepared by the members of the team working on the audit of receivables for a large client. Jennifer is the senior manager assisting the engagement partner, Ruby Rogers. Jennifer and Ruby have worked together on many audits and Jennifer knows the types of questions that Ruby will ask about the working papers if they are not up to the standard required by ASA 230.

Jennifer is trying to make sure that all documents are up to the required standard before Ruby sees them tomorrow.

Jennifer is particularly concerned about the documents relating to the receivable confirmations. This is because the audit assistant who wrote up the confirmation results recommended that no further work was required. On review of the results, Jennifer discovered that the audit assistant had incorrectly treated ‘no reply’ results as acceptable for a positive confirmation, when they are acceptable only for a negative confirmation. Jennifer had ordered further work be done to follow up these ‘no reply’ results.

Required

(a) What is the minimum standard that the audit documentation must meet?

(b) How would you treat the corrections made to the audit assistant’s recommendations and the additional work on receivable confirmations in the working papers? Explain. Refer to both ASA 505 and ASA 230 in your answer.