IMUS INSTITUTE

OF SCIENCE AND TECHNOLOGY

COLLEGE OF ACCOUNTANCY
Assurance Principles
1ST Semester S.Y. 2021
(Dr. Catherine O. Aquino, CPA)

Name: Karluz Mhore D. Trugo Score: _________________

Audit Documentation

Part 1

1. Means an individual (whether internal or external to the firm) who has practical experience and
reasonable understanding of audit process, PSA and applicable legal and regulatory
requirements, the business environment and auditing and financial issues relevant to the entity’s
industry. Experienced Auditor
2. Audit Administrative Working Papers – aid the auditors in planning and administration of
the audit, and include such items as the audit programs, questionnaires and flowcharts, decision
aids, time budgets, and engagement letters.
3. Lead Schedule – working papers that serve to combine similar general ledger accounts, the
total of which appears on the working trial balance
4. __________________________ – working papers that provide support for specific
representations made in the financial statements, such as letters of representations from clients,
lawyers’ letters, audit confirmations, and copies of the contracts.
5. _____________________ – consist of working papers showing the changes which occurred in
an account during a given period. By analyzing an account, the auditors determine its nature
and contents.
6. ________________________ – working papers that prove the relationship between two
amounts obtained from different sources
7. Material misstatements in the accounts disclosed by the auditors’ investigation are corrected by
means of audit adjustment
8. _________________________ – entries necessary to properly reflect financial results but not
representing misstatements in the financial records of the client.
9. Audit documentationb – means the record of audit procedures performed, relevant audit
evidence obtained and conclusions the auditor reached.
10. Audit file– means one or more folders or other storage media, in physical or electronic form,
containing the records that comprise the audit documentation for a specific engagement.
11. Correspondence file– this file contains all correspondence or letters to, from or in behalf of the
client.
12. ___________________ – used to verify such data as interest expense, income taxes, and
earnings per share
13. ________________________ – although the term schedule is at times applied to various types
of working papers, the preferred usage is to designate a listing of the details or elements
comprising the balance in an account at a specified date. Preparation of such a listing is often
an essential step in determining the nature of an account
14. Working Trial Balance– this is a list of the accounts in the client’s general ledger with column
that, as a minimum include unadjusted amounts directly from the client’s accounting records,
proposed adjusting entries and adjusted amounts
15. Audit notes– This is the working paper used to note items of work to be done that cannot be
completed by the following usual sequence of audit procedures.
Part 2

1. Types of working papers

1. Audit Administrative working papers
2. Working trial balance and lead schedule
3. Supporting schedules and analysis
4. Adjusting and reclassifying entries
5. Audit memoranda and documentation of corroborating information

2. Types of Audit Program

1. Standard all-purpose audit program
2. Tailor-made audit program
3. Modified standard form audit program

3. Example of Current File

1. Working Trial Balance
2. Lead and supporting schedules
3. Audit plan and programs
4. Adjusting and reclassifying journal entries
5. Financial statement

4. Example of Permanent File

1. Copies of contracts
2. Analysis of business and industry
3. Continuing analyses of fixed assets
4. Organization charts and excerpts from job manuals
5. Result of analytical procedures from previous years audit
6. Labor-management agreement
7. Information concerning related parties
8. Excerpts from minutes of meetings
9. Terms of capital stock and bond issues
10. Chart of accounts and accounting procedure manuals