What should auditors include in the work papers if severe infractions are found during an audit?

Including copies of the sampled documents as evidence in the work papers is crucial when severe infractions are found during an audit. This practice ensures that there is tangible and verifiable documentation supporting the findings of the audit. Such evidence allows other auditors or stakeholders to review and understand the basis for the conclusions drawn during the audit process. It provides context and substantiation for the interpretations made by the auditors regarding the infractions.

Documenting excerpts of evidence strengthens the integrity of the audit process. When regulators or oversight bodies review the work, they rely on existing documentation to assess the auditor's conclusions and recommendations. Therefore, having solid evidence enhances credibility and increases the likelihood that any necessary actions will be taken based on the audit's findings.

Other options, while potentially useful, do not fulfill the same level of requirement. Summaries of interviews, general observations, and electronic correspondence may contribute valuable context but lack the physical verification needed to substantiate claims of severe infractions. These elements should complement the evidence but cannot replace the need for direct documentation demonstrating what was sampled and assessed.