QUESTION 4

a) ISA 230 Audit Documentation contains the following statement with regard to working papers:

Audit working papers refer to the material prepared by, or for, or obtained and retained by, the auditor in connection with the performance of the audit work. Such material may be in the form of paper or electronic media.

The record of audit procedures performed, relevant audit evidence obtained, and conclusions the auditor reached in conducting an audit.

The working papers must be sufficiently complete and detailed to provide an overall understanding of the audit.

Required:

i. Describe THREE benefits that the auditors will obtain from working papers. (3 marks)

ii. Working papers are usually split into two separate files. List these files and give TWO types of information in each of the file. (2marks)

b) The audit engagement team of which you are a member, for the audit of God is Love Ltd has almost completed the audit of the financial statements for the year ended 31 December, 2020. You have been told that your firm will need to obtain a letter of representation from management as part of the audit evidence needed to form an opinion on the financial statement.

Required:

Describe FIVE ways AUDIT EVIDENCE can be gathered whencarrying out an audit. (5 marks)

(Total: 10 marks)