Audit Working Papers

Topics: Auditing, Audit, Financial audit Pages: 9 (2249 words) Published: April 22, 2013

Audit Working Papers

Presented By: Kanza Masood
Presented To: Miss Iram Butt
Semester: Semester 6
Date: 18th Feb’13
Course: Audit Internal Control

Audit working papers

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. They show the audit was: * Properly planned;

* Carried out;
* There was adequate supervision;
* That the appropriate review was undertaken; & finally and most importantly; * That the evidence is sufficient and appropriate to support the audit opinion. Audit working papers are the property of the auditor. In order to keep professional ethic, it cannot discover to third party without consent of the client unless limited specified situations mentioned in ISA 230 Documentation and required by law, the examples are court order, for public interest and so on. The forms of documentation may be flowchart, manual, narrative note, checklist or questionnaire.

Proper features of working papers
* Reviewed by auditors with supervisors noted.
* Signed, dated and approved by relevant level of audit staff with sufficient cross reference. * With evidence of effective audit planning, work done, sufficient and quality evidence. * Outstanding matters are cleared in due course.

There are a number of companies who offer electronic working paper tools for accountants. The leading providers include: Wolters Kluwer, CaseWare, Thomson, Data Prime Solutions, WorkPapers.Pro and Saltlake Infosolutions. Their products are TeamMate, CaseWare Working Papers, Engagement CS, Draftworx, WorkPapers and APEX Audit System respectively. Audit Working Paper Format 1. The diversity of audit assignment prevents the establishment of a single system or design of working papers to be used. Therefore, a uniform working paper format may not be used but work papers for functional areas such as cash receipts should display conformity in various types of audits. 2. Work papers may be in the form of paper, tapes, disks, diskettes, films, etc. There should be backup copies of electronically generated working papers. The backup copies should not be stored with the original copies.

Purpose of working papers
Working papers are the evidence of work done by the auditor, he should prepare working papers in order to provide evidence that audit was properly performed according to ISA standards. Working papers support auditor, in-case he is being sued in court by the client, for negligence of audit work. -------------------------------------------------

Importance of working papers

1. Working papers are instruments vital to the successful accomplishment of all audit assignments performed. The working papers provide documented evidence of an examination and evaluation and provide a connecting link between the work which is performed and the final audit report. Hence, their importance cannot be overly emphasized. 2. To a major extent, every auditor is judged by his skill and ability in preparing working papers. When working papers are prepared in good form with proper attention to layout, design, and legibility, with complete headings, explanations of sources, and verification of work performed, they create a feeling of confidence in the ability of the staff member. Working papers should always convey an impression of system and order and conscientious attention to detail, coupled with a clear distinction between the important and the trivial. 3. Another test of good working papers occurs when it is necessary for one staff member to leave a...
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