What it is
An audit memo records one matter from question to conclusion: what the issue was, what the team knew and from where, which guidance applied, what procedures were run and what evidence they produced, how the team reasoned, and what it concluded. A reviewer should be able to follow it without opening the file beside it.
This template follows that order and includes the items AU-C 230 asks documentation to show, including who performed the work and when, and who reviewed it, when and to what extent. Sections for misstatements, control deficiencies and consultation link the memo to the summary of uncorrected misstatements and the deficiency log.
When to use it
- A significant accounting judgment, an unusual transaction or a complex estimate needs a standalone record.
- A significant risk response needs a short conclusion document cross-referenced to the detailed workpapers.
- The firm’s policies call for a consultation to be documented.
What’s inside
- Matter, assertions affected, risk assessment link and why it matters
- Facts and sources, separating what was said from what was inspected
- Guidance considered, procedures and evidence, and analysis including contrary evidence
- Misstatements, deficiencies, consultation and conclusion
- Preparer and reviewer sign-off with extent of review
Standard cited
This template follows AU-C 230 / AU-C 220. It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use. See AU-C 230 explained, AU-C 220 explained.
Questions
What does audit documentation have to show about who did the work?
AU-C 230 asks the auditor to record who performed the audit work and the date completed, and who reviewed it and the date and extent of the review. The sign-off table at the end of the template captures both.
Should the memo quote the accounting guidance?
Cite the topic and paragraph and say how it applies to the facts. A long quotation adds length without showing judgment. State your own reading and the facts that support it.
When do I need a memo instead of a note on the workpaper?
When the conclusion depends on judgment, spans several workpapers, or a reviewer or later reader would need the reasoning in one place. Routine tests with a clear result do not need one.
What does the engagement partner need to review?
Under AU-C 220 as amended by SAS 146, the partner reviews documentation relating to significant matters and significant judgments, including difficult or contentious matters, and the conclusions reached. A memo per significant matter makes that review efficient.
Related templates
- Audit Planning Memo (AU-C 300)
- Audit Review Notes Log (Excel)
- Audit Completion and Partner Review Memo
- Engagement Partner Review Checklist (Audit)
Last updated 11/05/2026. All free templates.