3.

5 AUDIT DOCUMENTATION
(also called audit working paper)
AUDIT DOCUMENTATION -WP
 Auditing stds defined audit
documentation as “the principal
record of auditing procedures
applied, evidence obtained and
conclusions reached by the auditor
in an audit engagement”
 WORKING PAPERS (WP) – (1)
 WP : records prepared/obtained by the auditor in
connection with the audit
 Owned by auditor & retained at the auditor’s premises

after completion of an audit

 Can be used by client if auditor wants to release them

after careful consideration

 Can be subpoenaed by a court & thereby become

court’s property
 Can be sold/released to other users if auditor obtain

permission from the client

 WORKING PAPERS (WP) –(2)

 Purpose:
 To aid the auditor in providing reasonable
assurance that an adequate audit was conducted
in accordance with auditing std.
 To p.v. a basis for planning c/yr audit. For instance:

by making ref. to previous yr’s IC system

 To p.v. a record of evidence accumulated

 To p.v. data for deciding the proper type of audit

report
 To p.v. basis for review by partner/supervisor
RELATIONSHIP BETWEEN AUDIT
FILES & AUDIT WP
TYPES OF
FILES

CURRENT PERMANENT
Both files
FILE FILE
consists of
various
documents or
the audit
Eg. C/year minutes, Eg: MOA, AOA, contracts, working papers
AJE, Working TB, Analytical
IS, Analysis Procedures
 TYPES OF AUDIT FILE (AS WP)
 (1) kept in files
WP
 Permanent file
 Contains data of continuing importance from 1 yr to another.
Eg:
 Copies of MA & AA, contracts, loan agreement, info
pertaining to client’s IC system (such as flow charts, IC
questionnaires, org. chart
 Analyses from previous years of a/c that have continuing
importance to the auditors
 Information related to the understanding of IC and
assessment of control risk
 Results of analytical procedures from previous years’ audit
TYPES OF AUDIT FILE (AS WP)
(2)
Current file
 Contains data applicable to c/yr under audit.

 Audit programs

 General information relating to current audit such as

minutes of directors meeting, copies of IS & BS

 Working Trial Balance

 Adjusting & reclassification Entries

 Supporting Schedules – analyses, TB/Lists,

reconciliation amounts, test of reasonableness.

INDEXING, CROSS FOOTING,
EXTENSIONS
 Identify each document by client’s name, period
covered, contents, initial of the preparer, date &
indexing
 Audit documentation MUST be indexed & cross-
referenced
 Tick marks whenever schedules accomplished
notation at the bottom of the schedule
 THANK YOU