Regulation 62 — Audit Regulations 2020
Original Rule Text
62. Documentation by statutory auditor
The statutory auditor shall document, in the form of working papers, matters which are important in providing evidence that the audit has been carried out in accordance with the accounting, auditing and assurance standards prescribed by the Central Government/ICAI and the directions of the Comptroller and Auditor General.
What This Means
The statutory auditor must maintain proper working papers that document all important audit work. These working papers should provide evidence that the audit was conducted in line with applicable accounting and auditing standards prescribed by the Central Government or ICAI, as well as any directions issued by the CAG. Good documentation is essential to support audit conclusions and defend the auditor's opinion if questioned.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Statutory auditor must document audit work through working papers
- 2Working papers must provide evidence of compliance with auditing standards
- 3Documentation must show compliance with CAG directions
- 4Papers should be detailed enough to support all audit observations and conclusions
- 5Both Central Government and ICAI prescribed standards must be reflected in documentation
Practical Example
The statutory auditor of Hindustan Aeronautics Ltd maintains working papers documenting their verification of inventory at three manufacturing plants, including physical verification reports, stock reconciliation sheets, sampling methodology used, and a record of how CAG's direction to focus on defence inventory valuation was addressed. These papers are retained and made available when the Accountant General (Audit) team conducts the supplementary audit.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
How long must working papers be retained?▼
Can the CAG access the statutory auditor's working papers?▼
What standards govern the format and content of working papers?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.