Small Audit Documentation that Satisfies SASs

For all audit engagements, documentation must evidence compliance with the requirements of applicable SASs. Because SASs are written to be applicable audit engagements of all sizes, compliance for a small audit will likely be different than for a large audit. Audit documentation of compliance, therefore, is also likely to be different.

Here is a list of annual “key” documentation that will support most small audit strategies:

  • Client acceptance and retention evaluations
  • General ledger analysis worksheet
  • Small audit internal control questionnaire, flowcharts or memos by financial statement classification
  • Systems walk-through memo or other documentation
  • Analytical procedures worksheets for engagement planning and review
  • Risk of material misstatements evaluation by financial statements classification
  • Linking working paper to guide the selection of tests of controls and tests of balances procedures based on risk
  • Tolerable misstatements calculation by financial statements classification
  • Sampling and non-sampling decisions worksheet
  • Audit planning document summarizing audit strategies
  • Small audit programs tailored for audit risk

Future blogs will discuss the impact of a CPA firm’s quality control, preparation of this documentation, formulation of audit strategies and related opportunities for efficiencies. Visit us often!

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by Larry Perry, CPA, CPA Firm Support Services, LLC - Larry has over 40 years experience as a CPA practitioner, author of accounting and auditing manuals, author and presenter of live staff training seminars and author of webcast and self-study CPE programs.  He is co-founder of CPA Firm Support Services, LLC (www.cpafirmsupport.com), an organization providing resources, training and consulting to smaller CPA firms.  Larry writes a weekly blog on AccountingWEB.com focusing on small audits, reviews and compilations.  He is currently developing documentation manuals and handbooks for small audits, reviews and compilations and related electronic practice aids.

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