Introduction
In recent years we have seen the issuance of guidance by the Auditing
Standards Board related to audit documentation. Tom Ratcliffe, CPA,
PhD, Director of the School of Accountancy at Troy State University
in Troy, Alabama, reviews the workpaper documentation guidance in both
SAS No. 96 and SAS No. 99 as pertains to nonpublic entities.
Note: Reporting of CPE credit to a CPA's state board is the responsibility of the CPA.
Subscribers to CPE Network may not receive duplicate credit for this material,
which previously aired in the November 2004 and December 2004 editions of CPE Network Accounting and Auditing Report.
Organization
This text is divided into four chapters:
Chapter 1 takes a look at the documentation requirements in an audit of a private entity client. This guidance has
changed in recent years, and Tom Ratcliffe, PhD, CPA, provides his insights and practice pointers on what it means for the
practitioner with a small business client.
Chapter 2 focuses on documentation requirements resulting from SAS No. 99 and other standards.
Chapter 3 contains supplemental materials, including (1) Workpaper Documentation Issues in Private-Company Audit Engagements;
and (2) SAS No. 99 Documentation Issues in Private-Company Audit Engagements.
Chapter 4 contains review problems.
Program Learning Objectives
Upon completion of this program, the user should:
- Understand the documentation requirements in SAS Nos. 96 and 99.
- Know what tested items must be documented in accordance with SAS No. 96.
- Know what documentation issues exist and what auditors must do to meet the requirements of the standard.
- Be able to identify standards other than SAS Nos. 96 and 99 that have documentation requirements.
- Know what the requirement for incorporating and documenting unpredictability into an audit requires.
- Understand the issues associated with documentation of specific fraud risks.