Lesson: Audit Workpapers

In this lesson, the importance of audit workpapers is discussed, which serve as the principal means of documentation for auditors. The lesson explains that auditors retain ownership of their working papers, while the opinion is the property of the client. It then elaborates on the audit documentation retention requirements according to Sarbanes-Oxley 2002: seven years for issuer clients and five years for non-issuer clients. The importance of clear and understandable work papers is highlighted, emphasizing that someone with basic audit or accounting experience should be able to comprehend them. The lesson also covers the necessary evidence of review by another auditor and the chain of command involved in the review process. Finally, it explores the auditor's procedures in case of scope limitations or a lack of responsiveness from the client, including trying additional measures to address the issue before considering withdrawing from the engagement or disclaiming an opinion.