Standards on Internal Audit (SIA) – Internal Audit Documentation

SIA 330 Internal Audit Documentation:

  • Meaning: As per the Standard on Internal Audit SIA 33O for Internal

“’Internal Audit Documentation’ refers to the written record (electronic or otherwise) of the internal audit procedures performed, the relevant audit evidence obtained and conclusions reached by the Internal Auditor on the basis of such procedures and evidence.”

The Internal Auditors are expected to record all the obtained evidences and then collate all them in complete and sufficient documentation form for the audit. This Standard specifically explains the key requirements in the process of internal audit documentation collection, its preparation, its retention and the subsequent review.

  • Scope: The Standard 330 applies to all the assignments prepared and conducted during the internal audit. The nature and content of documentation has also been covered but in a separate guide for implementation on the related subject.
  • Objective: The objective of the Internal Audit Documentation is as follows-
  • It helps in validating the findings of the audit.
  • It helps in reaching the conclusions from these findings.
  • It also, aids in supervising and reviewing the work of the internal audit.
  • It helps in establishing the performed work in conformance with the pronouncements applicable by the Institute of Chartered Accountants of India (ICAI).
  • It also supports the basis on which all the observations during the audit were made on.
  • The overall objective behind the preparation of internal audit documentation is to allow the internal auditor to review and form an opinion about the whole audit function.

It is really important that the internal audit documentation stand on its own. It should not require additional information for arriving at a particular conclusion or any follow-up for making clarifications.

Internal Audit Documentation

Requirements in Internal Audit Documentation:

The various requirements for the Internal Audit Documentation that must be met or achieved are as follows-

  1. Nature of Documentation: It includes all the written records either electronic or otherwise of the various activities of the audit and procedures that were conducted, including the collected evidence, recorded information, taken notes and the held meetings.
  2. Documentation Process: During the Internal Audit Documentation the audit work papers must be logically collated and arranged in proper files for retaining and for supporting the internal audit’s performance through a written process. Also, the working papers must be retained as per the legal and retention policies of the company. It must be shred only with those people who are allowed to have access to them.
  3. Content and sufficiency of Documentation: The significant matters that must be overlooked by the internal auditor require a proper exercise of judgment along with a conclusion.

The Internal Audit Documentation must be-

  • Useful and relevant to the objectives of the internal audit service.
  • It must undergo a review or approval procedure for at least one level.
  • It must be reliable and dependable in the sense that it allows the peer reviewer to reach at the same conclusion as drawn earlier.
  • It should be complete, satisfactory and sufficient for avoiding the requirement of any follow-up inquiry.
  1. Timely Completion of Documentation: Soon after the audit procedures are completed and concluded the internal audit documentation must be compiled into proper files. Also, the matters that are pending must be closed at the drafting stage of the audit reporting. It is compulsory to complete the administrative process of arranging the files of the final audit within sixty days from the date of releasing the final audit report.
  2. Confirmation of Compliance: The auditor must confirm and check the compliance of audit procedures with SIA 330. The list of the documents that are during the Internal Audit Documentation are as follows:
  • Wherever appropriate work files must be made and maintained for each and every assignment completed, reviewed and approved during the audit with a proper cross referencing with the Internal Audit Program.
  • As an integral part of the Internal Audit Manual, the written documentation process and policies regarding the audit work papers must be followed.

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    Author: Anil Agrawal
    EZYBIZ India Consulting LLP, New Delhi. The firm is business and tax consultancy firm providing consultancy in Taxation, Regulatory, Transfer pricing, Valuation, Corporate funding and Business set up matters. He may be reached at 9899217778 or anil@ezybizindia.in.
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