Audit documents 006

Detailed Audit Document Templates & Checklists (Time Sequence)

1. Pre-Audit Phase

Engagement Letter

Client name, address, and contact details

Scope of audit and objectives

Responsibilities of auditor and management

Audit fees and billing terms

Limitations and confidentiality clauses

Signatures of both parties

Client Acceptance and Continuance

Background check and integrity assessment

Review of previous audit issues

Assessment of management competence and ethics

Risk factors identified

Decision memo on acceptance or continuation

Understanding the Entity and Environment

Industry overview and regulatory environment

Business operations and structure

Key personnel and governance

Internal control environment description

Prior year audit findings summary

Risk Assessment and Planning Memorandum

Identification of significant risks (fraud, error)

Risk rating and impact analysis

Planned audit procedures for each risk

Materiality thresholds set

Timing and resource allocation

Audit Strategy and Audit Plan

Overall audit approach (substantive, controls reliance)

Detailed audit programs for each significant account

Use of specialists or experts noted

Coordination with internal audit (if any)

 

2. Interim Audit Phase

Internal Control Evaluation and Testing

Walkthrough documentation for key processes

Control design and operating effectiveness testing

Control deficiency and remediation notes

Analytical Procedures

Ratio analysis and trend comparisons

Identification of unusual fluctuations

Documentation of follow-up actions

Interim Financial Information Review

Review of quarterly or half-year financials

Notes on variances and adjustments

Audit Program Updates

Changes to audit plan based on interim findings

Additional procedures added or removed

 

3. Fieldwork / Final Audit Phase

Detailed Audit Working Papers

Account balance confirmations (bank, receivables)

Inventory observation checklists and counts

Fixed asset verification schedules

Substantive testing of transactions and balances

Reconciliation statements and supporting documents

Audit Evidence and Sampling Documentation

Sampling methodology and rationale

Sample selection details

Evidence obtained and conclusions drawn

Management Representation Letter

Confirmation of completeness and accuracy of records

Disclosure of related party transactions

Confirmation of subsequent events

Signed by CEO/CFO or equivalent

Adjusting Journal Entries and Audit Differences

List of proposed adjustments

Management agreement or disagreement notes

Impact on financial statements

Going Concern Assessment

Financial ratios and cash flow analysis

Management plans for future viability

Auditor’s conclusion and documentation

Subsequent Events Review

Identification of events after reporting date

Impact assessment and disclosure

 

4. Completion and Reporting Phase

Audit Completion Checklist

Verification of all audit steps completed

Review of working papers and documentation

Sign-off by audit team members

Audit Summary Memorandum

Summary of key audit findings

Significant risks and how addressed

Outstanding issues and resolutions

Draft Audit Report

Audit opinion draft (unmodified, qualified, adverse, disclaimer)

Compliance with Companies Act and ISA reporting format

Management Letter

Internal control weaknesses identified

Recommendations for improvement

Management responses

Final Audit Report

Signed and dated audit opinion

Distribution list and filing

FRC and ICAB Compliance Documentation

Evidence of adherence to local standards

Quality control review notes

 

5. Post-Audit Documentation

Archiving of Audit Files

Indexing and organizing files

Retention period compliance (usually 7 years)

Secure storage arrangements

Quality Control Review Documentation

Internal review notes

External peer review reports (if any)

Compliance with Big 4 or firm-specific quality standards

 

If you want, I can also help you create sample templates or checklists in Excel, Word, or PDF formats for practical use. Let me know your preference!

Audit documents 005

A comprehensive audit engagement, following the standards adopted in Bangladesh (ISAs as BSAs), is essentially a journey of compiling a structured portfolio of evidence at each stage. Below is the full, time-sequenced document checklist that Big 4 firms use in the Bangladesh context. The "Key Standards" referenced throughout are the Bangladesh Standards on Auditing (BSA) aligned with ISAs.

🗓️ Phase 1: Pre-Engagement

Objective: Establish the groundwork and ensure the audit is viable and ethical.

· Engagement Acceptance/Continuance Form: Analyzing independence, integrity of management, and competency to perform the audit.

· Engagement Letter: A formal contract outlining the scope, timeline, and fees; required to be signed before the audit starts.

· Permanent Audit File (Initial Section): Contains key client documents (e.g., Charter, Articles of Association, prior-period financial statements).

· Audit Independence & Objectivity Confirmation: Forms signed by all engagement team members confirming they meet ICAB ethical requirements.

📋 Phase 2: Planning Phase (ISA 300)

Objective: Develop a detailed roadmap for the engagement.

· Preliminary Risk Assessment & Analytical Review: High-level analysis of financial data to identify initial risk areas.

· Materiality Calculation Worksheet: Quantitative calculation of materiality levels for the engagement.

· Overall Audit Strategy Memorandum: Setting the direction of the audit (scope, timing, and key decisions).

· Detailed Audit Plan (or Audit Program): Nature, timing, and extent of audit procedures for each material assertion.

· Audit Budget and Staff Assignment Schedule: Resource allocation plan.

· Timing & Communication Schedule: Meeting timeline with client management, audit committee, and Board meetings.

🔍 Phase 3: Risk Assessment Phase (ISA 315)

Objective: Gain a deep understanding of the entity to identify misstatement risks.

· Entity-Level Controls Documentation (Narrative/Flowchart): Finalized understanding of the entity's control environment.

· Process Walkthrough Documents: Narrative or flowchart for key cycles (Revenue, Payroll, Inventory, etc.), signed by process owners.

· Risk Assessment Matrix/Linkage Document: Mapping identified risks to the audit plan.

· IT General Controls (ITGC) Documentation: Output from evaluating controls over IT systems (for complex entities or banks).

⚙️ Phase 4: Fieldwork Phase (ISA 330 & ISA 500)

Objective: Execute audit procedures to gather sufficient and appropriate evidence.

· Lead Schedules & Trial Balance: Summarizing account balances, linking detailed testing to financial statements.

· Test of Controls Working Papers: Procedures and conclusions for each key control tested.

· Substantive Analytical Procedures: Reasonableness analyses (ratios, trend lines, etc.) with explanations for significant fluctuations.

· Substantive Test of Details Schedules: Primarily tests of balances/transactions for revenue, purchases, payroll, inventory, and bank confirmations (including Bangladesh Bank reporting requirements for financial institutions).

· External Confirmation Log: Records of confirmations (e.g., bank, receivables/payables) and follow-ups on non-responses.

· Related Party Transactions Documentation: Confirmation that related party transactions and disclosures have been properly accounted for.

🏁 Phase 5: Completion Phase (ISA 450 & ISA 580)

Objective: Evaluate audit findings and obtain final management endorsements.

· Summary of Uncorrected Misstatements (SUM): List of all identified misstatements tracked and evaluated, reviewed by management.

· Subsequent Events Review: Review procedures for events up to the audit report date, including minutes, inquiries, and legal letters.

· Going Concern Assessment Documentation: Evaluation of management's assumptions and the entity's ability to continue as a going concern.

· Management Representation Letter: Signed by management, confirming their responsibility for the financial statements and completeness of information provided.

· Written Representations on Specific Matters: Additional letters regarding fraud, compliance, or related parties if applicable.

· Engagement Quality Control Review (EQCR) Checklist: Independent review of significant judgments made during the audit.

📝 Phase 6: Reporting Phase (ISA 700, ISA 705, ISA 706)

Objective: Form the final audit opinion and issue the report.

· Auditor's Report Draft: Final unmodified or modified opinion (qualified, adverse, or disclaimer).

· Auditor's Report to Management (Management Letter): Formal communication of internal control deficiencies and improvement recommendations.

· Board of Directors' Meetings Agenda & Minutes: For board approval of audited accounts and the audit report.

· Communication with Those Charged with Governance (TCWG): Formal letters summarizing audit scope, significant findings, and accounting policies.

· Audit Report Verification Code (DVC): For statutory filings, the code generated from the ICAB Document Verification System (DVS).

📂 Phase 7: Post-Completion Phase (ISA 230)

Objective: Archive the audit file and retain it per standards.

· Final Audit File Assembly Index: Table of contents for the final audit file.

· Administrative Completion Checklist: Ensuring all audit documents are included and administrative tasks are complete.

· Audit Documentation Retention Log: Record of retention (min. 5-7 years post-audit report) and eventual destruction.

· FRC Audit Quality Review File (if selected): File for submission to the Financial Reporting Council for regulatory review.

To help visualize the document flow, here’s a simplified timeline:

1. Acceptance & Planning (Weeks 0-4) → 2. Risk Assessment (Weeks 4-6) → 3. Fieldwork (Weeks 6-14) → 4. Completion (Weeks 14-18) → 5. Reporting (Weeks 18-20) → 6. Assembly (Within 60 days of report) → 7. Retention (5-7 years)

I hope this comprehensive list is helpful for structuring your audit processes. If you'd like a deeper look into a specific phase or standard—like the detailed requirements of ISA 315 or the nuances of audit reporting in Bangladesh—feel free to let me know.

Audit documents 004

As a professional serving clients in Bangladesh, you need an audit documentation system that satisfies both International Standards on Auditing (ISAs) and local statutory requirements under the Companies Act 1994.

Based on ICAB’s guidance and Big 4 best practices, the following list organizes audit documents chronologically. This represents the "Audit Lifecycle," ensuring you capture evidence from acceptance through to regulatory filing .

Phase 1: Pre-Engagement & Acceptance (Before Fieldwork)

Before signing, you must verify independence and capacity. This phase documents your right and ability to perform the audit.

· Engagement Letter: Signed agreement outlining scope, timeline, and fees (Companies Act 1994, Section 210 requires formal intimation of appointment) .

· Independence & Objectivity Confirmation: Written confirmation that the firm is free from conflicts of interest (IESBA Code/ICAB Bye-Laws) .

· Client Acceptance/Continuance Form: Evaluation of client integrity and assessment of engagement risks (Required by ISQC 1/ISA 220) .

· Notification to RJSC: Form documenting the auditor’s appointment (must be filed within 7 days of appointment per Section 210) .

Phase 2: Planning & Risk Assessment (At the Start of the Period)

Documents the strategy and identifies where misstatements are likely to occur.

· Audit Planning Memorandum: Overall audit strategy, timing, and direction of the engagement.

· Risk Assessment Documentation: Identification of inherent and control risks, including fraud risks (ISA 315 requires recording how risks were identified) .

· Internal Control Understanding: Flowcharts, narratives, or walkthroughs documenting the entity's internal control system.

· Materiality Calculation Worksheet: Determination of overall performance materiality and clearly trivial threshold.

· Audit Plan/Program: Detailed nature, timing, and extent of planned procedures for each material account.

Phase 3: Execution & Fieldwork (During the Year & Post Year-End)

The core evidence gathering phase. ICAB's "Dummy Audit File" heavily emphasizes this section .

· Permanent File Documents: Company incorporation documents, MOA/AOA, and significant contracts (updated annually).

· Lead Schedules & Trial Balance: Schedules tying the trial balance to the financial statements.

· Test of Controls Working Papers: Evidence of operating effectiveness of controls (sampling and results).

· Substantive Procedure Working Papers: Detailed testing of transactions, balances (AR, AP, Inventory), and disclosures.

· Analytical Review Sheets: Ratio analysis and trend fluctuations with explanations (ISA 520).

· External Confirmations: Bank letters, receivable/payable confirmations, and lawyer letters.

· ICAB DVS (Document Verification System) Log: Generation of the Document Verification Code (DVC) . Effective Dec 1, 2020, all audit reports are invalid without this code .

Phase 4: Review & Completion (After Evidence is Gathered)

Ensures quality control before the opinion is issued. Includes "Hot Reviews" (before report signing).

· Summary of Unadjusted Differences: Schedule of identified misstatements (quantitative/qualitative) left unadjusted.

· Significant Matters Log: Record of consultations, disagreements, or difficulties encountered (Required by ISA 230) .

· Subsequent Events Review: Documentation of procedures performed between year-end and report date.

· Management Representation Letter: Signed letter from management confirming responsibility for information provided.

· Written Representations on Fraud: Management’s specific acknowledgment of fraud prevention responsibility.

· Engagement Quality Control Review (EQCR) Checklist: Independent review by a second partner (Required for listed entities/PIEs) .

Phase 5: Finalization & Reporting (The Deliverable)

The culmination of the audit.

· Independent Auditor’s Report: Final opinion (Unmodified, Qualified, Adverse, or Disclaimer) including Key Audit Matters (KAM) for listed entities (Based on ISA 700/701) .

· Report to Those Charged with Governance (TCWG) : Formal letter to the Audit Committee regarding internal control deficiencies.

· Management Letter: Recommendations to management for operational or control improvements.

Phase 6: Assembly & Retention (Post-Reporting)

Legal and professional requirements for closing the file.

· Final File Assembly Checklist: Administrative completion check. ISA 230 mandates that the final audit file must be assembled within 60 days of the date of the auditor's report .

· Document Retention Log: ICAB requires retention for a minimum of 5 years from the report date (ISA 230) . The Companies Act 1994 also implies retention consistent with company record-keeping requirements.

· Annual Return to ICAB: Practicing firms must submit an annual return of clients to ICAB by February 15 of the following year. Failure blocks renewal of the Practicing Certificate .

Summary of Local Regulatory Links (BD Context)

Regulatory Body Key Requirement Relevant Document

ICAB Quality Assurance Audit Practice Manual (APM) Compliance & DVC 

RJSC Statutory Filing Audited Financial Statements (filed within 30 days of AGM) 

BSEC Public Interest Entities Key Audit Matters (KAM) & Enhanced Auditor's Report 

For a practical template, refer to the ICAB Dummy Audit Working Paper File (Manufacturing Sector) available on the ICAB website, which aligns perfectly with this sequence .

Audit documentation 003

An audit file must follow a chronological structure that maps perfectly to the life cycle of an audit engagement. In Bangladesh, this sequence is governed by the International Standards on Auditing (ISA) as adopted by the Institute of Chartered Accountants of Bangladesh (ICAB), the Companies Act 1994, the Financial Reporting Council (FRC) regulations, and institutional Big 4 risk management practices.

The definitive list of comprehensive audit documentation is organized below by chronological sequence across five distinct phases.

## Phase 1: Pre-Engagement & Client Acceptance

Before any substantive planning begins, the auditor must assess independence, professional ethics, and client risk profiles.

 * **Expression of Interest (EOI) or Proposal Document:** Formal submission to the client outlining the firm's capabilities and scope of work.

 * **Client Evaluation Checklist & Know Your Customer (KYC):** Documentation verifying client identity, ultimate beneficial ownership (UBO), and anti-money laundering (AML) risk screening.

 * **Professional Clearance / No Objection Certificate (NOC):** Formal communication sent to the predecessor auditor under the ICAB Code of Ethics to inquire if there are any professional reasons not to accept the engagement.

 * **Evaluation of Independence and Ethical Compliance:** Form signed by the engagement team confirming the absence of direct or indirect financial interests, familial ties, or non-audit service conflicts.

 * **Letter of Engagement (ISA 210):** The contract defining the objective, scope, responsibilities of management, and the applicable financial reporting framework.

 * **Audit Appointment Letter & Board/AGM Resolution:** Client-provided copy of the Annual General Meeting (AGM) or Board resolution appointing the firm, ensuring compliance with Section 210 of the Companies Act 1994.

## Phase 2: Audit Planning & Risk Assessment

This phase establishes the overall audit strategy and detailed testing approaches. All risk assessments must align with the specific regulations of Bangladesh (such as FRC rules for Public Interest Entities).

 * **Overall Audit Strategy & Planning Memorandum (ISA 300):** Document defining the scope, timing, direction of the audit, and resource allocation.

 * **Materiality Working Paper (ISA 320):** Calculation sheet establishing Overall Materiality, Performance Materiality, and the Clearly Trivial Threshold based on selected benchmarks (e.g., profit before tax, revenue, or total assets).

 * **Risk Assessment Procedures Workbook (ISA 315):** Documentation regarding the understanding of the entity and its environment, including the applicable financial reporting framework.

 * **Internal Control Evaluation Questionnaire (ICEQ):** Comprehensive walkthrough narratives, flowcharts, and design evaluation files for key transaction cycles (e.g., Revenue, Procurement, Payroll).

 * **Preliminary Analytical Review Workings (ISA 520):** Ratio analysis, trend analysis, and horizontal/vertical variations comparing current-year unaudited figures with prior-year audited numbers to spot unusual fluctuations.

 * **Notes of Planning Meeting:** Minutes of the internal team meeting chaired by the Engagement Partner to discuss fraud risks (ISA 240) and specialized testing areas.

 * **Prepared by Client (PBC) Tracker:** The master list of schedules, ledgers, and reconciliations requested from the client's management team.

## Phase 3: Audit Execution & Testing (Substantive & Controls)

The core operational phase where field auditors accumulate evidence to address the identified risks of material misstatement.

 * **Test of Controls (TOC) Sheets (ISA 330):** Sample testing files detailing the operating effectiveness of the client's internal controls.

 * **Audit Programs / Lead Schedules:** Summary schedules for each financial statement line item linking the trial balance to individual test sheets.

 * **Substantive Test of Details (TOD) Workpapers:**

   * **Inventory Physical Verification Report (ISA 501):** Stock count instructions, sheet-to-floor and floor-to-sheet testing logs, and cutoff documentation.

   * **External Confirmations Logs (ISA 505):** Standard balance confirmation letters sent directly to, and received from, bankers, legal advisors, customers, and vendors.

   * **Bank Reconciliation Statements (BRS) Review:** Audit testing sheets verifying client bank reconciliations against original bank statements and bank confirmation certificates.

   * **Fixed Assets / Property, Plant, and Equipment (PPE) Verification:** Physical inspection logs and depreciation calculation verification sheets.

   * **Taxation and VAT Workings:** Documentation reviewing the adequacy of current and deferred tax provisions against national tax regulations (Income Tax Act 2023 and Value Added Tax and Supplementary Duty Act 2012).

 * **Journal Entry (JE) Testing Logs:** Sifting and evaluating manual or unusual journal entries to address the risk of management override of controls.

## Phase 4: Review & Evaluation

Supervisors, managers, and partners review the gathered evidence to ensure it supports the audit conclusions.

 * **Summary of Uncorrected Misstatements (SUAM / ISA 450):** A schedule accumulating all unadjusted errors found during testing to evaluate their aggregate impact on the financial statements.

 * **Subsequent Events Review Checklist (ISA 560):** Minutes review, inquiry sheets, and post-balance-sheet ledger scans up to the date of signing.

 * **Going Concern Evaluation Working Paper (ISA 570):** Documentation assessing management’s assessment of the entity's ability to continue as a going concern for at least twelve months from the reporting date.

 * **Audit Cross-Referencing & Review Notes Grid:** Documentation proving that senior team members reviewed the workpapers, along with the resolution of any queries raised.

 * **Engagement Quality Control Review (EQCR) Document (ISA 220):** Independent partner review file mandatory for listed entities and high-risk Public Interest Entities (PIEs) under FRC guidelines.

## Phase 5: Completion & Reporting

The final closure documents required to conclude the legal and professional obligations of the audit firm.

 * **Management Representation Letter (MRL / ISA 580):** Written statements from client management confirming their responsibilities and the completeness of information provided to the auditors.

 * **Management Letter / Internal Control Weakness Memo (ISA 265):** Letter sent to those charged with governance outlining reportable control deficiencies and recommendations for improvement.

 * **Document Validation System (DVS) Token Generation Receipt:** Under the joint mandate of ICAB and the National Board of Revenue (NBR), auditors must register the audit report on the ICAB DVS portal and print the unique DVS tracking code on the final report.

 * **Independent Auditor’s Report (ISA 700, 701, 705, 706):** The final signed audit opinion, incorporating Key Audit Matters (KAM) for listed entities and specific sector report formats (such as Bangladesh Bank guidelines for financial institutions).

 * **Archival and Sign-Off Checksheets:** Formal lock-down verification proving the final audit file is closed and archived within 60 days from the report date.

### Key Audit File Categorization

For structural clarity, audit firms divide these chronological documents into two distinct physical or digital files:

| File Type | Purpose | Key Content Included |

|---|---|---|

| **Permanent Audit File (PAF)** | Contains documents of a continuing, long-term nature that remain relevant across multiple audit years. | Certificate of Incorporation, Memorandum and Articles of Association (M&A), Trade License, long-term bank loan agreements, system flowcharts, and historical tax registration certificates (TIN/BIN). |

| **Current Audit File (CAF)** | Contains documentation strictly relating to the specific financial year currently under audit. | Signed Engagement Letter, Materiality sheets, specific year trial balances, individual Test of Details (TOD) workpapers, bank confirmations, and the final signed Audit Report. |

Audit documentation 002

Here is the complete framework — **56 core audit documents across 7 phases**, fully cross-referenced. Below is a structured summary of the architecture:

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## Framework Architecture

### Phase 1 — Pre-Engagement (DOC-01 to 06)

Before any work begins. Covers client acceptance, independence, AML screening (MLPA 2012 + BFIU), predecessor communication, and the engagement letter (ISA 210 / Contract Act 1872). All mandatory before signature.

### Phase 2 — Planning (DOC-07 to 13)

Overall audit strategy (ISA 300), materiality computation (ISA 320 — three tiers: overall, performance, specific), entity understanding (ISA 315 Revised 2019 with 6 components of ICFR), preliminary analytics, ITGC planning, group audit instructions (ISA 600 Revised), and team briefing.

### Phase 3 — Risk Assessment (DOC-14 to 20)

The Risk Assessment Matrix (RAM) by assertion is the anchor. Fraud brainstorming (ISA 240), ICQ + walkthroughs, related party mapping (BAS 24 + ISA 550 — critical in BD family-conglomerate structures), going concern initial review (ISA 570), and significant estimates identification (ISA 540 Revised 2019 — includes WPPF provision under Labour Act 2006).

### Phase 4 — Fieldwork (DOC-21 to 34)

14 documents covering: audit programmes (ISA 330), controls testing, sampling (ISA 530), bank confirmations (with BB/EDF-specific variants), debtors circularization (ISA 505), stock observation (ISA 501 — critical for RMG/pharma), revenue cut-off, **deferred tax** (BAS 12 + ITA 2023 — tax holiday SROs, minimum tax s.82C), **WPPF 5%** workpaper (Labour Act 2006 mandatory), loan analysis (BFRS 9 + BRPD circulars), litigation (BAS 37 + VAT Act 2012), query log (ISA 450), and expert evaluation (ISA 620).

### Phase 5 — Completion & Review (DOC-35 to 43)

Summary of audit differences vs. materiality thresholds, final analytical review (ISA 520.6), going concern final conclusion, subsequent events (BAS 10), Management Representation Letter (ISA 580 — signed same date as report), completion checklist, **EQCR documentation** (ISQM 2 — mandatory for all PIEs/listed), BFRS/BAS disclosure checklist, and **KAM documentation** (ISA 701 — mandatory for listed entities per BSEC 2020 notification).

### Phase 6 — Reporting (DOC-44 to 50)

Independent Auditor's Report (ISA 700/701/705/706), Management Letter (ISA 265), TCWG communication (ISA 260 + BSEC CG Code 2018), **Long-Form Audit Report for Bangladesh Bank** (BCD Circular — mandatory for banks), ICFR report (ISAE 3402), **Corporate Governance Compliance Certificate** (BSEC 2018 — filed with DSE/CSE), and tax audit certificate (ITA 2023 + Transfer Pricing Rules).

### Phase 7 — Post-Issuance (DOC-51 to 56)

File assembly within 60 days (ISA 230 + ICAB 7-year retention), hot/cold quality review (ISQM 1), post-report-date subsequent events, regulatory filing confirmations (RJSC + BSEC + BB + IDRA), lessons-learned memo, and independence renewal triggering the **7-year partner rotation** assessment (IESBA + ICAB Code of Ethics 2020).

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**Key BD-specific items embedded throughout:** WPPF 5%, BSEC CG Code 2018, BRPD circulars, Income Tax Act 2023, NBR SROs, Labour Act 2006, MLPA 2012/BFIU, mouza/khatian land title verification, EDF loan confirmations, and CIC clearance for going concern.

Audit documents 001

For a Bangladesh statutory audit (Companies Act 1994, ISA as adopted by ICAB, FRC Bangladesh requirements, Big-4 methodology, ISQM 1/2), the audit file should be organized in chronological order from client acceptance to archive.

The list below is intentionally comprehensive and follows the actual audit timeline.

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Phase 1: Client Acceptance & Continuance

A. Client Acceptance File

1. Engagement acceptance checklist

2. Continuance assessment

3. Client profile sheet

4. Corporate structure chart

5. Ultimate beneficial ownership (UBO) details

6. Related party mapping

7. Integrity assessment of management

8. Independence declaration

9. Conflict of interest assessment

10. AML/KYC documentation

11. Risk assessment of client

12. Previous auditor communication

13. Professional clearance letter

14. Background search documentation

15. Sanctions screening

16. Litigation screening

17. Engagement risk rating

18. Engagement approval memo

19. Partner approval documentation

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Phase 2: Engagement Setup

B. Engagement Administration

20. Signed engagement letter

21. Audit strategy memorandum

22. Audit timetable

23. Staffing plan

24. Budgeted hours

25. Materiality determination

26. Performance materiality calculation

27. Trivial threshold determination

28. Audit team independence confirmation

29. Specialist involvement assessment

30. Component auditor assessment

C. Permanent File Update

31. Certificate of incorporation

32. Memorandum & Articles

33. RJSC filings

34. Trade license

35. TIN certificate

36. VAT registration

37. Bank facility agreements

38. Major contracts

39. Lease agreements

40. Insurance policies

41. Board structure details

42. Group structure

43. Prior years' audited FS

44. Accounting policy manual

45. ERP/System overview

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Phase 3: Understanding the Entity (ISA 315)

D. Entity Understanding

46. Industry analysis

47. Economic environment assessment

48. Regulatory environment assessment

49. Business model documentation

50. Revenue stream analysis

51. Operational process mapping

52. Key management personnel list

53. Organizational chart

54. Governance assessment

55. Fraud risk brainstorming memo

56. Going concern preliminary assessment

E. Process Documentation

57. Revenue cycle walkthrough

58. Procurement cycle walkthrough

59. Inventory cycle walkthrough

60. Payroll cycle walkthrough

61. Treasury cycle walkthrough

62. Fixed asset cycle walkthrough

63. Financial close cycle walkthrough

F. Internal Control Documentation

64. Risk Control Matrix (RCM)

65. Flowcharts

66. Narratives

67. Walkthrough testing

68. IT environment understanding

69. ITGC assessment

70. Segregation of duties analysis

71. Key controls identification

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Phase 4: Risk Assessment

G. Risk Assessment File

72. Significant risks memo

73. Fraud risks memo

74. Journal entry fraud assessment

75. Revenue recognition risk assessment

76. Management override assessment

77. Related party risk assessment

78. Going concern risk assessment

79. Compliance risk assessment

80. Preliminary analytical review

81. Risk universe document

82. Financial statement level risks

83. Assertion level risks

84. Risk-response linkage document

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Phase 5: Test of Controls

H. Control Testing

85. Control testing strategy

86. Sample size calculation

87. Control testing working papers

88. Control exceptions log

89. Deficiency evaluation memo

90. Compensating controls assessment

91. ITGC test results

92. Application control testing

93. User access review testing

94. Change management testing

95. Backup recovery testing

96. Control reliance conclusion

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Phase 6: Substantive Audit

Cash & Bank

97. Bank confirmation

98. Bank reconciliation testing

99. Cash count report

100. Cut-off testing

101. Foreign currency testing

Receivables

102. AR lead schedule

103. Debtor confirmation control sheet

104. Positive confirmations

105. Negative confirmations

106. Alternative procedures file

107. Subsequent receipt testing

108. ECL assessment

109. Aging analysis

Inventory

110. Inventory lead schedule

111. Inventory attendance memo

112. Inventory count sheets

113. Count test documentation

114. Inventory reconciliation

115. NRV testing

116. Obsolescence assessment

117. Inventory cut-off testing

Fixed Assets

118. FAR reconciliation

119. Additions testing

120. Disposal testing

121. Physical verification report

122. Depreciation recalculation

123. Impairment assessment

Investments

124. Investment schedule

125. Valuation testing

126. Market value verification

127. Fair value assessment

Revenue

128. Revenue lead schedule

129. Sales cut-off testing

130. Sales invoice testing

131. Contract review file

132. IFRS 15 assessment memo

133. Analytical review

134. Journal testing

Purchases & Expenses

135. Expense lead schedule

136. Vouching working papers

137. Accrual testing

138. Expense cut-off testing

139. Related party expense review

Payroll

140. Payroll reconciliation

141. Employee master verification

142. Payroll recomputation

143. Tax deduction testing

Borrowings

144. Loan confirmation

145. Interest recalculation

146. Covenant compliance review

Provisions

147. Legal confirmation

148. Provision assessment memo

149. IAS 37 review

Taxation

150. Current tax computation review

151. Deferred tax calculation

152. Tax assessment status

153. Tax provision review

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Phase 7: Completion Stage

I. Completion Procedures

154. Completion checklist

155. Subsequent event review

156. Going concern final assessment

157. Final analytical review

158. Misstatement summary

159. SAD schedule

160. Materiality reassessment

161. Disclosure checklist

162. IFRS compliance checklist

163. Companies Act compliance checklist

164. FRC compliance checklist

165. Related party disclosure review

166. Segment disclosure review

167. Going concern disclosure review

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Phase 8: Management Representations

J. Management Representation File

168. Draft representation letter

169. Signed representation letter

170. Fraud representation

171. Related party representation

172. Going concern representation

173. Litigation representation

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Phase 9: Reporting

K. Financial Statements Review

174. Draft FS

175. Final FS

176. Cross-reference review

177. Disclosure review notes

178. Financial statement tie-out

L. Audit Opinion File

179. Engagement quality review documents

180. EQCR clearance

181. Partner review notes

182. Resolution log

183. Final opinion memorandum

184. Key audit matters memo

185. Emphasis of matter memo

186. Audit report

187. Signed auditor report

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Phase 10: Governance Communication

M. TCWG Communication

188. Audit findings report

189. Internal control deficiencies report

190. Management letter

191. Audit committee presentation

192. Board presentation

193. TCWG communication letter

194. Significant deficiencies communication

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Phase 11: Archiving & Quality Control

N. Archiving File

195. File completion checklist

196. Archiving checklist

197. Final version control log

198. Locked file evidence

199. Retention schedule

200. Archive approval

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Additional Big-4 / FRC / ISQM Best-Practice Documents

201. Engagement Quality Risk Assessment

202. Root Cause Analysis (prior year findings)

203. Data Analytics Plan

204. Journal Entry Testing Universe

205. Fraud Interview Notes

206. Significant Estimate Challenge Memo

207. Professional Skepticism Documentation

208. Management Bias Assessment

209. ESG Reporting Consideration Memo

210. Cybersecurity Risk Assessment

211. Audit Evidence Sufficiency Memo

212. Contradictory Evidence Register

213. Consultation Memorandum

214. Hot Review Documentation

215. Cold Review Documentation

216. ISQM Monitoring Findings

217. Independence Monitoring File

218. Engagement Performance Review

219. Coaching Review Notes

220. Lessons Learned Memo

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ISA Mapping (Most Important)

Area Primary ISA

Acceptance ISA 220, ISQM 1

Planning ISA 300

Materiality ISA 320

Risk Assessment ISA 315

Fraud ISA 240

Responses to Risks ISA 330

Audit Evidence ISA 500

Confirmations ISA 505

Estimates ISA 540

Related Parties ISA 550

Subsequent Events ISA 560

Going Concern ISA 570

Written Representations ISA 580

Reporting ISA 700–706

Group Audit ISA 600

Quality Management ISQM 1 & ISQM 2

For a large Bangladeshi listed company audit, a fully documented Big-4-style file will often contain 300–600+ individual working papers, with the above list forming the core chronological audit trail expected by ISA, FRC Bangladesh inspections, and ICAB practice reviews.