ACCA Audit and Assurance (F8) Practice Exam

What is one of the objectives of Audit Documentation?

1. To provide a record of all internal communications

2. To ensure accountability

3. To summarize the financial statements

4. To identify potential fraud risks

The correct answer is: To ensure accountability

One of the key objectives of audit documentation is to ensure accountability. This is because audit documentation serves as evidence that the audit was conducted in accordance with relevant auditing standards and regulations. It provides a comprehensive record of the procedures performed, the audit findings, and the rationale for the conclusions reached. This accountability aspect is crucial as it allows for the audit work to be reviewed and evaluated by supervisors, regulators, or other stakeholders. It also strengthens the reliability of the audit conclusions, enhancing the trust stakeholders place in the audit process and the resultant financial statements. In essence, effective audit documentation helps to establish a clear chain of evidence that demonstrates the auditor's diligence and adherence to professional standards, thereby holding the auditor accountable for their work.