Rose Dodd is reading the documents prepared by the members of the team working on the audit of receivables for a large client. Rose is the senior manager assisting the engagement partner, Imogen Malinki. Rose and Imogen have worked together on many audits and Rose knows the types of questions that Imogen will ask about the working papers if they are not up to the standard required by ASA 230. Rose is trying to make sure that all documents are up to the required standard before Imogen sees them tomorrow. Rose is particularly concerned about the documents relating to the receivable confirmations. This is because the audit assistant who wrote up the confirmation results recommended that no further work was required. On review of the results, Rose discovered that the audit assistant had incorrectly treated ‘no reply’ results as acceptable for a positive confirmation, when they are acceptable only for a negative confirmation. Rose had ordered further work be done to follow up these ‘no reply’ results.

Required

(a) What is the minimum standard that the audit documentation must meet?

(b) How would you treat the corrections made to the audit assistant’s recommendations and the additional work on receivable confirmations in the working papers? Explain. Refer to both ASA 505 and ASA 230 in your answer.