Exercise on PSA 230

What is the effective date for the Philippine Standard on Auditing 230?

• March 15, 2009

• December 15, 2009

• January 1, 2008

• June 30, 2010

What is the primary objective of the auditor according to PSA 230?

• To prepare financial statements

• To provide a sufficient record for the auditor's report

• To conduct external inspections

• To assist management in decision-making

Which of the following is NOT a purpose of audit documentation?

• Assisting the engagement team in planning the audit

• Providing evidence of the auditor's basis for conclusions

• Enabling quality control reviews

• Serving as a substitute for the entity's accounting records

What must the auditor document regarding significant matters discussed with management?

• The financial impact of the discussions

• The nature of the significant matters discussed

• The personal opinions of the auditor

• The historical context of the discussions

According to PSA 230, what should the auditor do if they depart from a relevant requirement?

• Ignore the requirement

• Document the alternative procedures and reasons for departure

• Seek approval from management

• Notify the regulatory body immediately

What is the definition of 'audit documentation' as per PSA 230?

• The correspondence with external auditors

• The final report submitted to management

• The record of audit procedures performed and evidence obtained

• The financial statements prepared by the entity

Which of the following is a requirement for the timely preparation of audit documentation?

• Documentation is optional if the audit is small

• Documentation should be prepared on a timely basis

• Documentation must be completed before the audit begins

• Documentation can be completed at any time after the audit

What should the auditor do if they identify information inconsistent with their final conclusion?

• Consult with external auditors

• Document how the inconsistency was addressed

• Ignore the inconsistency

• Revise the final conclusion immediately

What is the retention period for audit documentation according to PSA 230?

• At least three years

• At least five years

• No specific retention period

• At least seven years

Which of the following is an example of audit documentation?

• Management's financial statements

• Personal notes of the auditor

• Audit programs and analyses

• Emails unrelated to the audit