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.
What is the purpose of working papers and how are they used?
Working papers are summary documents used by accountants and auditors to prepare financial statements . They act as supporting documentation that organizes and supports up the information found in management reports and financial statements, and they also summarize information found in other client documents.
What is the purpose of working paper?
Importance of working papers
Working papers are important because they: are necessary for audit quality control purposes . provide assurance that the work delegated by the audit partner has been properly completed. provide evidence that an effective audit has been carried out.
What is the working paper in accounting?
Work papers are the collection of documents assembled by an auditor while examining the financial records of a client . Work papers provide the evidence upon which an auditor’s opinion regarding a client’s financial records is based.
What do u mean by working paper?
1a : a paper on which tentative figures , memoranda, data, or analyses of accounts are set down during the conduct of a survey (as an audit) of a business. b : a tentative statement prepared to serve as a basis for discussion or negotiation.
What are some common types of working papers?
While there are many different types of working papers, three of the most common are interview summaries, worksheets, and reperformance documents . Each of these working papers document a different type of audit evidence and test, but all should include some basic information.
What are the essential of good working paper?
Essentials of Good Working Papers
Working papers should be complete in all respects . They should contain all necessary information so that they may be of maximum use. 2. They should be properly organized and arranged so that one may not experience any difficulty in locating a particular matter.
Who decides scope of audit?
the scope of audit is determined by the auditor having regard to following: (a) Terms of the Audit Engagement (b) requirement of relevant Statute. (c) pronouncements of the icai. However, the terms of engagement cannot supersede the requirements of statute or pro- nouncements of ICAI. 1.
Is checking should not be applied to?
If the auditor finds that the internal control system is either ineffective or defective , he should not apply test checking. Random Selection: The sample of records, selected for test checking should be taken on random basis.
What are the objectives of verification?
Objectives of Verification are: To show correct valuation of assets and liabilities . To know whether the balance sheet exhibits a true and fair view of the state of affairs of the business. To find out the ownership and title of the assets.
What are the uses of audit working paper?
Audit working papers are used to support the audit work done in order to provide the assurance that the audit was performed in accordance with the relevant auditing standards . They show the audit was: Properly planned; Carried out properly.
How do you write a good working paper?
- Bold or highlight important words and sentences. ...
- Use Equations. ...
- Copy chunks of raw data. ...
- Mix Preambulatory and Operative. ...
- Don’t write too much. ...
- Use headlines. ...
- Have a cheat sheet. ...
- Give options where you can.
Can you cite a working paper?
Working Papers may be cited without seeking prior permission from the author. The proper form for citing Working Papers in this series is: Author (year). ... Once a paper has been published elsewhere, it is ordinarily preferable to cite it in its final, published version, rather than in its Working Paper version.
What is the other name of working paper?
The working papers are the property of the accounting firm conducting the audit. These papers are formally referred to as Audit Documentation or sometimes as the audit file . The documents serve as proof of audit procedures performed, evidence obtained and the conclusion or opinion the auditor reached (AU 339.05).
Who is the owner of Working Paper?
Working papers are the property of the auditor , and some states have statutes that designate the auditor as the owner of the working papers. The auditor’s rights of ownership, however, are subject to ethical limitations relating to the confidential relationship with clients.
How long should a working paper be?
Working papers should be journal article length: 6,000-12,000 words .
