The correct answers are: Auditors shall document their reasoning on all significant matters which require the exercise of judgement and the conclusion reached; Working papers shall enable an experienced auditor, having no previous connection with the audit, to understand the nature, timing and extent of the audit procedure performed to comply with the ISAs and applicable legal and regulatory requirements.

ISA 230 Audit documentation states that auditors shall prepare documentation that is sufficient to enable an experienced auditor, having no previous experience with the audit, to understand:

• The nature, timing and extent of the audit procedure performed to comply with the ISAs and applicable legal and regulatory requirements.

• The result of the audit procedure performed and the audit evidence obtained and

• Significant matters arising during the audit, the conclusion they have reached and any significant professional judgement they have made to reach these conclusions.

It is not necessary or practical to document every matter which comes to the auditors' attention during the course of the audit and working papers should be reviewed as the audit progresses, and not left until the end of the audit when rectification may be difficult. It is necessary for working papers to identify the person preparing them in order that any errors or outstanding matters can be followed up.