Modern quality control of audit services is very strict. Copies of the company's documents that confirm the results of the activity are not enough. Should the auditor have his evidence for all items of the balance sheet and how many working documents should be developed?
I don't think auditors should stick to a number of working papers or documents that is sufficient to provide confidence in their clients' audited financial statements. However, auditors should cover themselves with all respective working papers and related documents so that they can answer any enquiry as regards following IFRS or GAAP in their audit.
Dear Ірина Крупельницька , nice question, but this is not the way how an audit works and specially the challenge financial auditors face in collecting audit evidence that buttress their opinion about the quality of the financial statement. The requirements are formalized in detailed professional standards like https://www.aicpa.org/resources/landing/audit-attest-and-quality-control-standards et cetera. To answer your question: the number of working documents is not the right measure in the provisioning of confidence (assurance) to the client of an financial audit. More precisely: the CPA should be independent and objective in actually performing an audit. It is the responsibility of a financial auditor to investigate whether the financial statement prepared under the responsibility of top management gives a true and fair view of the company's financial position. Kind regards Rob
The independence of the auditor and technical competence is the most important factor in proving the credibility of the audit opinion and thus the confidence of the client.
It depends on the country in question. Ultimately there is no set number of documents that are required, rather - it is the quality of evidence and standard that is required. Generally, it is also on a case by case basis. Key documents include: bank statements covering relevant accounting periods, contracts, invoices - general documents that any good accountant should be keeping on behalf of their client. Automated accountancy software can also suffice for a small business.
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