Question
Lucy Huang has just finished her first audit assignment. She is now assisting her audit manager, Tom Lucas, with the wrap-up of the engagement. He
Lucy Huang has just finished her first audit assignment. She is now assisting her audit manager, Tom Lucas, with the wrap-up of the engagement. He has asked Lucy to make a list of all open review notes, to-do items, and audit procedures, and to note for each whether the matter requires more attention, has been resolved (but not yet noted on file), or is no longer relevant because of other events.
Tom has also asked Lucy to go through the files and remove all unnecessary documentation, drafts, and review notes. Lucy is very nervous about this task because she believes her inexperience will mean she will not be able to distinguish unnecessary from necessary. She remembers learning about Arthur Andersen being prosecuted because it shredded files related to the Enron audit that should have been kept.
Required
a. What types of additional attention would open matters require?
b. Explain why documents in a clients audit file would be unnecessary. Provide two examples.
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