EXPERIENCES to follow the standards such as International Standards


are ideas about where the people are intended to use it to meet the quality and
requirement so the action can be morally correct and acceptable among the
others. In a scope of accounting career, there is a few standards that
accountant need to follow to meet the accepted statement as required. For the
auditor, in process of complete the all task and audit report they need to
comply with the relevant standards by gaining the correct process in order to
fulfil audit assurance. Generally, I need to follow the standards such as
International Standards in Auditing (ISAs), Malaysia Financial and Reporting
Standards (MFRS) and Malaysia Private Entities Reporting Standards (MPERS) are
required for private company. There are some theoretical concept that I have
been review during my academic period in TAF’s programme such as ISA 200
Reasonable Assurance,

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ISA 200 Reasonable Assurance

The theoretical concept related
to my practical experience in auditor’s responsibilities that I have review is ISA
200 Reasonable Assurance in accordance with ISAs is designed to provide
reasonable assurance that the financial statements taken as whole are free from
material misstatements. When the auditor reports on the effectiveness of
internal control over financial reporting, the auditor is also responsible for
identifying material weaknesses in internal control. Misstatements are usually
considered material if the combined uncorrected errors and fraud in the
financial statements would likely have changed the decisions of a reasonable
person using the statements.

though it is such a difficult to measure a size of materiality, auditors are
responsible for finding all immaterial error and fraud. Assurance is a measure
of the level of certainty that the auditor has obtained at the completion of
the audit. Reasonable assurance is presumably less than certainty or absolute
assurance and more than a low level of assurance. The reason why the auditor is
responsible for reasonable but not absolute assurance are most audit evidence
from testing a sample of a population, accounting presentations contain complex
estimates, which inherently involve uncertainty and can be affected by future
events and fraudulently prepared financial statements are open extremely
difficult. According to ISA 240, there are two types of misstatement which is
fraud and errors either type of misstatement can be material or immaterial. An
error is an unintentional misstatement of the financial statements whereas
fraud is intentional.

the standards of ISA 200, the auditor must be prepared and performed with an
attitude of professional scepticism in all aspect of the engagement.
Professional scepticism is an attitude that includes a questioning mind and a
critical assessment of audit evidence.

230 Audit Documentation

next theoretical concept that
related to my practical experience on academic period TAF’s programme that I
have been review is ISA 230 audit documentation. Documentation
is the auditor’s inspection of the client’s documents and records to prove the
information that is or should be included in the financial statement. The
document examine by auditor are the records used by the client to provide
information for conducting its business in an organized manner because each
transaction in the client organisations is supported by at least one document.
According to ISA 230, audit documentation requires auditor to document the
aspects of audit engagement as and when they happen. Each standard has certain
requirements that need to be documented, however, ISA 230 covers the
responsibility of the auditor’s documentation in general.

Besides, as an auditor, they are required to
maintain an audit file in which he shall document the findings and facts
concerning audit engagement and the procedures applied by the auditor to achieve
audit objectives. The audit documentation is presented as evidence that the
audit was conducted in accordance with the requirements of the ISA in addition
to the benefits of other documentation. The document of procedures, result of
audit evidence and the conclusion reached on the basis of evidence shall be
done by auditor. Then, the auditor must document how he ensures the compliance
of ISAs in case if there is any doubt.

Other than that, in ISA 230, audit
documentation contains the set of standards that deal with working papers.
Audit working papers include those papers and documents, which consist of
details about accounts, which are under audit. It is a written, private
materials, which an auditor prepares for each audit. It also describe the accounting
information, which an auditor obtained from his client, the method of
examination used, his conclusions and the financial statements. There are a few
steps to prepare an audit working papers which are:

1.    A descriptive heading: It should include the client’s
name, the working paper purpose, and the date under examination.

2.    Indexing: Like a book, every working paper has a unique
page number showing its place in the audit file depends on SALIHIN template.

3.    Cross-referencing: To improve the efficiency, it must be
cross-reference the working papers to related and supporting working papers.

4.    Tick marks: Use green tick marks as abbreviations for
standard auditing tasks or tick in the index of audit programme.

5.    The source of the information: Include documents
examined or who are interviewed to gain evidence about the auditing matter at

6.    A conclusion: Write a summary of the results of your
analysis and opinion of the validity of the client assertion.

During the TAF’s programme, I need to do the
documentation of Trail Network Sdn Bhd which is the first time I do that. When
preparing the document, it should comply with ISA 230’s objective which is to
provide the evidence of the auditor’s basis for a conclusion about the
achievement of the overall objectives of the auditor and also for the evidence that
the audit was planned and performed in accordance with ISAs and applicable legal
and regulatory requirements. (ISA 230)