M/s. PK & Company, Chartered Accountants, are the statutory auditors of JC Limited. CA Tarun, partner of M/s. PK & Company, was entrusted to…

In the given case, the audit assistant has kept a large chunk of draft inventory sheets and the final inventory sheet in the audit file which is not correct as the auditor is not required to document draft inventory sheets. Auditor should ensure that only final inventory sheets will form part of the audit documentation. Thus, approach of the audit assistant of filing draft and final inventory sheet is not correct. As per SA 230, “Audit documentation", audit documentation may be recorded on paper or on electronic or other media. The auditor need not include in audit documentation: superseded drafts of working papers and financial statements,notes that reflect incomplete or preliminary thinking,previous copies of documents corrected for typographical or other errors, andduplicates of documents.