ExpertHard1 markMultiple Choice
CPA · Question 06 · Area 1: Ethics
An auditor is documenting the results of an audit engagement. According to auditing standards, which of the following is the primary requirement regarding the completion of audit documentation?
An auditor is documenting the results of an audit engagement. According to auditing standards, which of the following is the primary requirement regarding the completion of audit documentation?
Answer options:
A.
All documentation must be finalized and locked before the audit report is issued.
B.
The report release date must be documented, and final assembly of the audit file must be completed within 60 days (non-issuer) or 45 days (issuer) of that date.
C.
Any modifications to documentation after the report release date are strictly prohibited.
D.
Audit documentation must be retained for a minimum of 3 years from the report release date.
How to approach this question
Recall the specific timelines for audit file assembly (45 vs 60 days) and retention (5 vs 7 years).
Full Answer
B.The report release date must be documented, and final assembly of the audit file must be completed within 60 days (non-issuer) or 45 days (issuer) of that date.✓ Correct
The report release date must be documented, and final assembly of the audit file must be completed within 60 days (non-issuer) or 45 days (issuer) of that date.
For non-issuers (AICPA/SAS), the assembly period is 60 days following the report release date. For issuers (PCAOB), it is 45 days. The report release date defines the start of these periods.
Common mistakes
Confusing the assembly period with the retention period, or mixing up issuer vs. non-issuer deadlines.
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