Auditing and Attestation- Certified Public Accountant (CPA) Practice Exam -

What is the primary purpose of audit documentation?

1. To provide evidence of financial transactions

2. To support the auditor's opinion and findings

3. To comply with regulatory requirements

4. To assist in planning future audits

The correct answer is: To support the auditor's opinion and findings

The primary purpose of audit documentation is to support the auditor's opinion and findings. This documentation serves as the cornerstone for forming an audit opinion, providing a detailed account of the audit processes, procedures, evidence gathered, and the conclusions drawn by the auditor. It shows how the auditor reached their conclusions, allowing for transparency and accountability in the audit process. This comprehensive documentation is essential not only during the current audit but also when addressing inquiries from stakeholders such as clients, regulators, or other auditors. It offers fundamental assurance that the auditor has performed their work thoroughly and in accordance with applicable standards, enabling the stakeholders to understand the basis of the auditor's conclusions. While audit documentation indeed fulfills other roles, such as providing evidence of financial transactions and complying with regulatory requirements, those aspects are more ancillary in the context of the overall audit purpose. Although it is helpful for planning future audits, the primary objective remains to substantiate the auditor's opinion.