These are records and information forming audit evidence gathered or used in audit. Procurement audit documents are governed by ISA 230 which requires the audit officer to document matters which are important in providing evidence to support the audit opinion.
The auditor must be able to provide evidence support their report and opinion.
These audit documents are filed in different audit files:
Current file – A file used to store relevant working papers as each audit engagement is completed. It is a file which contains information to be used by the auditor. It is closed at the end of the audit period.
1. A copy of current financial statements of the auditee.
2. Internal control questionnaires and flow charts that show the procuring entities internal control system.
3. It should contain procurement audit program prepared by the auditor.
4. A copy of management letter that highlights weaknesses in the internal control system.
5. Letter of representation obtained from the entities management concerning the procurement operations.
6. A record of audit queries raised during the audit together with the responses got.
Permanent Audit file – A file containing importance to the auditor that will be used beyond one financial period.
It contains all permanent background data and information of the auditee. It should contain all material information to provide a permanent record and should be updated at the end of each audit.
1. Statutory materials governing the conduct of procurement audit.
2. The establishment of rules and regulations governing the entity.
3. Addresses of the auditee registered office and other operating premises.
4. Organizational structure and systems showing the procurement function together with names of key professional personnel and their lines of authority.
5. A list of procurement policies and procedures adopted by the entity.
6. Letter of representation obtained from the clients management.
7. Copies of all past audit reports and end responses.