WRITING THE AUDIT OBSERVATION

MEMORANDUM
Session 1: Describing the AOM and its Linkages to IRRBA, (PPSA) ISSAI and the Independent
Auditor’s Report
Exercise 1.1 – 2
Linkages of AOM to PPSA
Problem on Audit Documentation

Objective:
 To identify and describe which audit documents are relevant or in support of the
AOM.

Instructions to the Participants:

1. Obtain the Audit Documentation Sheet (ADS)
2. Accomplish the ADS by filling in your answers as required in the columns provided.
3. Give an example of the document in Column 1 which you know or you may have
encountered in audit, and state its relevance to the AOM you developed (can be
hypothesis)

Documentation Example Relevance to AOM

1. Audit programs
2. Analyses
3. Checklists
4. Memoranda
5. Summaries of significant matter
6. Letters of confirmation
7. Letters of representation
8. Correspondence (including email)
concerning significant matters
9. Abstracts or copies of the entity’s
records – for example, significant
and specific contracts and
agreements

1 Webinar Activity 1.1 – 2