Audit working papers are used to document the information gathered during an audit. They provide evidence that sufficient information was obtained by an auditor to support his or her opinion regarding the underlying financial statements. Working papers also provide evidence that an audit was properly planned and supervised. They should contain sufficient information for an auditor who did not work on an audit to discern the reasons for the opinion given regarding a client's financial statements. The forms of documentation that may be contained within the working papers include the following:
- Checklists of standard investigation items that were completed, and by whom
- Copies of correspondence
- Documentation of the assertions investigated and supporting evidence found
- Extracts from the corporate minutes of the client
- Flowcharts of a client's key transaction processes
- Narrative discussions of issues found
- Questionnaires for which the client provided answers
In addition, there may be extensive cross referencing between the documents contained within the working papers.
Audit working papers are prepared by the audit staff and audit seniors, and are reviewed by audit senior managers and partners. If a reviewer finds that any issues have not yet been addressed, then these issues are delegated to the on-site audit team for action. Reviewers sign and date each page examined. Once an audit has been concluded, the audit working papers are considered legal evidence, and so are appropriately indexed and filed. At a minimum, the working papers will likely be reviewed the next year by the assigned audit senior or manager, who will want to understand any issues found in the prior year, and also to determine if there are any ways to budget the audit staff's time more effectively.
Several software providers sell off-the-shelf software that creates electronic versions of working papers, so that auditors are not as burdened by the volume of paperwork commonly found in a traditional audit.
230.23 (h) who performed the audit work and the date such work was completed; and 230.23 (i) who reviewed the audit work performed and the date and extent of such review. 240.3 In planning and performing the audit to reduce audit risk to an acceptably low level, did we consider the. Audit working papers are the documents which record all audit evidence obtained during financial statements auditing, internal management auditing, information systems auditing, and investigations. Audit working papers are used to support the audit work done in order to provide assurance that the audit was performed in accordance with the relevant auditing standards.
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- The working papers constitute complete and conclusive evidence in future as to the entirety and completeness of the audit work. Contents of audit working papers. AAS 3 states working papers should record the auditor’s plan, the nature, timing and extent of the audit procedures performed; and the conclusions drawn from the evidence obtained. Generally, audit working papers consist of the following details: Schedule of debtors and creditors.
- The functions of audit working papers include:. Provide a means of assigning and coordinating audit work. Aid in review of the work. Provide support for the auditors' report. Document compliance with generally accepted auditing standards. Aid in planning and conducting future audits.
Guide to Audit Working Papers
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How to Conduct an Audit Engagement
Audit Working Paper Sample
All documentation should be retained in an audit file
The audit file will follow the structure below:
- Planning
- Audit work carried out on each section of the financial statements (e.g. Non Current Assets, Inventory)
- Completion and review
Free Audit Working Papers
Auditors must document
- What items were tested
- Who did the testing
- When was the testing
- Who reviewed the work and when
Discussion of all significant matters with management must also be documented
Includes
- Planning Documentation (Strategy, plan, risk analysis)
- Audit programmes
- Summary of significant matters
- Letters of confirmation / representation
- Correspondence
Permanent and current audit files
Permanent audit files contain information of continuing importance to the audit.
The permanent file will include
- Names of management, those charged with governance, shareholders
- Systems Information
- Business and Industry background
- Title deeds
- Contracts
- Copy of the company's legal constitution
- Board minutes of continuing relevance
- Previous years' signed accounts, analytical procedures and management letters
- Engagement letters
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![Audit Files And Working Papers Audit Files And Working Papers](/uploads/1/1/9/7/119773967/875037994.png)
Current audit files
contain information which is relevant to the current year's audit.
Working Papers Audit Training
They contain:
![Auditor Auditor](/uploads/1/1/9/7/119773967/817121444.jpg)
- Financial statements
- Accounts checklists
- Management accounts details
- Reconciliations of management and financial accounts
- A summary of unadjusted misstatements
- Report to partner including details of significant events and misstatements
- Review notes
- Audit planning memorandum
- Time budgets and summaries
- Representation letter
- Management letter
- Notes of board minutes
- Communications with third parties such as experts or other auditors
Current audit files also contain working papers covering each audit area
These should include the following:
- A lead schedule including details of the figures to be included in the financial statements
- Problems encountered and conclusions drawn
- Audit programmes
- Risk assessments
- Sampling plans
- Analytical procedures
- Details of substantive tests and tests of control