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In a recently completed investigation referred from the Stock Exchange of Hong Kong Limited, the Accounting and Financial Reporting Council (AFRC) identified an improper practice regarding audit documentation relating to the work carried out by the auditor (the Auditor) of a listed entity (the Listed Entity) on other information included in the Listed Entity’s annual report.

Auditors should ensure that the audit documentation always meets both the requirements and objectives of the HKSAs. In complying with the documentation requirement in HKSA 720, in order to meet the objective of documentation to enable the conduct of external inspections, the auditor should include in the audit file all versions of the documents containing other information, which the auditor has obtained from management before or after the date of the auditor’s report and should not remove previous documentation that evidences work done before the date of the auditor's report.  Furthermore, the documentation should clearly indicate the date of receipt of the final version.

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