This guide covers best practices for retaining and managing documents within a DataSnipper-enabled Excel file, including how to use DataSnipper's features to support your audit documentation requirements.
Introduction
DataSnipper for Excel accelerates the speed and quality of audit work by automating and documenting tests of details, tests of controls, walkthroughs, and financial statement procedures. You can import audit evidence files directly into Excel, link them to your testing workbook, and use DataSnipper to search, document, and automate audit testing. This also makes the review of those procedures more efficient.
Document retention within DataSnipper
When you import documents into a DataSnipper-enabled workbook, they are indexed, embedded in the Excel file, and converted to PDF. Several options exist for removing or retaining these documents.
It is strongly advised to avoid retaining extra documents that are not normally kept on file. Your firm's audit methodology and standard documentation procedures should always take precedence.
Balance this against ensuring that a reviewer can easily access documentation and re-perform audit testing using DataSnipper's review features.
Review procedures within DataSnipper
DataSnipper includes a document viewer within Excel, enabling simultaneous review of the testing workbook and the audit evidence. Cross-references are created between individual cells containing snipped data and the corresponding location in the evidence file. This allows a reviewer to navigate directly to the relevant page and section.
Reviewers should use this navigation feature to improve the quality and efficiency of their checks over audit procedures.
Include PDFs toggle
A toggle in the DataSnipper settings allows you to remove all embedded documents from the workbook at once. When disabled, documents are no longer stored inside the Excel file, but DataSnipper can still open them if they are saved in the same folder as the workbook.
If documents are stored on a shared drive, DataSnipper can reimport them and re-link the snips when another user opens the workbook. This lets reviewers access work without requiring evidence files to be embedded in Excel.
Recommended documentation procedures
The table below summarises recommended documentation practices for common testing types. The overriding principle from ISA 230 s.8 is that documentation should be sufficient for a trained auditor with no prior knowledge of the audit to understand the nature, timing, extent, and results of the procedures performed. Your firm's individual methodology always applies.
Type of Testing | Type of Documentation | Preparer Action | Reviewer Action |
Walkthrough Testing | One transaction at all key process stages, with evidence of control activities | Include snips corresponding to each step in the process | Review the steps and retain the documentation on file |
Test of Controls | Evidence that each control attribute was met | Include snips on evidence files to confirm each attribute was tested | Review evidence and retain a sample of one item; remove the rest |
Test of Details | Substantive audit testing evidence | Include snips on evidence to demonstrate the relevant audit assertion was applied | Review evidence and retain or remove in line with your firm's methodology |
Document Review (contracts, minutes) | Key documents requiring review | Include snips on the specific sections reviewed | Navigate to relevant sections using snips; retain the key document and remove extraneous sections |
Financial Statement Procedures | Financial statements | Include snips corresponding to procedures performed, such as mathematical accuracy checks | Review procedures performed, then retain financial statements in line with your firm's methodology |
Conclusion
DataSnipper provides several options for managing document retention within your testing workbooks. In all cases, apply your firm's individual methodology and use the above as supporting guidance.