of accounts. Summary of accounting policies used by the auditee entity. Special remuneration, if any, for senior officers. Previous audited Financial Statements. Others as appropriate. Policies and Procedures Manuals may be in the Permanent File, if they are brief or, alternatively, a copy should be in the auditor’s bookcase or filing cabinet. Note: the supporting documentation is voluminous, the auditor may decide to include only a reference to the title of the documentation and its physical location rather than keeping the whole document in the Permanent File. 4.2 The Audit Team’s Responsibility The audit team is responsible for gathering the information required to be put in the set of working papers associated with the Permanent File. These are listed in the next section. The preparation of Permanent File for the first time will be a time-consuming exercise and sufficient audit resources should be allocated to this task in the audit resource plan. For subsequent audits of the same type for the same entity, the audit team simply needs to confirm that the information is still relevant, and to update the Permanent File at planning stage where necessary. The dates on which updates occurred should be recorded on the Update Control Sheet (Form PF) provided. Members of the audit team should be familiar with the information in the Permanent File as it is required to have an understanding of the entity’s business in order to check that an effective and efficient audit is conducted. It needs to be highlighted that the audit strategy and methodology recommended under FAM provide for continued quality assurance through all the phases of audit. While reviewing the permanent file, the functionaries entrusted with the quality assurance of audit should ensure that the various steps recommended in these Guidelines and respective forms have been completely followed in all respects. 4.3 Documentation in Permanent File Titles of various forms specified in the Audit Working Papers Kit are listed below: Update Control Sheet (PF) Status of the Entity (PF-I) Background Information (PF-II) List of Auditable Locations (PF-III) List of Bank Accounts (PF-IV) List of Authorized Signatories (PF-V) External Factors (PF-VI) Accounting Records and Accounting Key Controls (PF-VIII) Significant Audit Areas (PF-IX)
of accounts. Summary of accounting policies used by the auditee entity. Special remuneration, if any, for senior officers. Previous audited Financial Statements. Others as appropriate. Policies and Procedures Manuals may be in the Permanent File, if they are brief or, alternatively, a copy should be in the auditor’s bookcase or filing cabinet. Note: the supporting documentation is voluminous, the auditor may decide to include only a reference to the title of the documentation and its physical location rather than keeping the whole document in the Permanent File. 4.2 The Audit Team’s Responsibility The audit team is responsible for gathering the information required to be put in the set of working papers associated with the Permanent File. These are listed in the next section. The preparation of Permanent File for the first time will be a time-consuming exercise and sufficient audit resources should be allocated to this task in the audit resource plan. For subsequent audits of the same type for the same entity, the audit team simply needs to confirm that the information is still relevant, and to update the Permanent File at planning stage where necessary. The dates on which updates occurred should be recorded on the Update Control Sheet (Form PF) provided. Members of the audit team should be familiar with the information in the Permanent File as it is required to have an understanding of the entity’s business in order to check that an effective and efficient audit is conducted. It needs to be highlighted that the audit strategy and methodology recommended under FAM provide for continued quality assurance through all the phases of audit. While reviewing the permanent file, the functionaries entrusted with the quality assurance of audit should ensure that the various steps recommended in these Guidelines and respective forms have been completely followed in all respects. 4.3 Documentation in Permanent File Titles of various forms specified in the Audit Working Papers Kit are listed below: Update Control Sheet (PF) Status of the Entity (PF-I) Background Information (PF-II) List of Auditable Locations (PF-III) List of Bank Accounts (PF-IV) List of Authorized Signatories (PF-V) External Factors (PF-VI) Accounting Records and Accounting Key Controls (PF-VIII) Significant Audit Areas (PF-IX)
Commercial%20Audit%20Guidelines-Final%2025%20Mar%202010%20.docx