An AICPA study found that the most common audit issue is a
lack of adequate documentation. Although some auditors may think that documenting
the nature, timing, extent and results of audit procedures will break the audit
budget, many practitioners have found that this is not the case.
In fact, strong documentation will facilitate compliance
with auditing standards and it usually leads to a more efficient engagement.
The time spent documenting in accordance with the standards is an investment
that will pay dividends later. Complying with the requirements while
implementing the best practices will help auditors and audit firms perform
high-quality work while increasing overall efficiency. In other words, take a
smart approach to planning, embrace standardization, document now and save time
later, and be prepared for what's ahead.
For more information, read the November 2017 article “4
strategies for efficient, effective audit documentation” in the Journal of Accountancy online. As well, review
the additional AICPA guidance and resources at the end of that article. Further guidance on audit
documentation in the context of exercising professional judgment is also
available in previous posts on this blog.
