The form and content of working papers are affected by matters such as the
Working papers should be sufficiently complete and detailed so as to provide an overall understanding of the audit. They should contain information on planning the audit, the nature, timing and extent of the audit procedures performed and the results and conclusions from the procedures. Show
Working papers should be sufficient to allow an ‘experienced auditor, having no previous connection with the audit’ to be able to understand: •the nature, timing and extent of the audit procedures performed to comply with the ISAs (UK) and applicable legal and regulatory requirements; •the results of the audit procedures performed, and the audit evidence obtained; and Need help? Get subscribed!To subscribe to this content, simply call 0800 231 5199 We can create a package that’s catered to your individual needs. Or book a demo to see this product in action. Call an Expert: 0800 231 5199 Our sites
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Ch 10. documentation from Sazzad Hossain, ITP, MBA, CSCA™ The auditor should prepare and maintain working papers, the form and content of which should be designed to meet the circumstances of a particular engagement. The information contained in working papers constitutes the principal record of the work that the auditor has done and the conclusions that he has reached concerning significant matters. Functions and Nature of Working Papers.02Working papers serve mainly to—
.03Working papers are records kept by the auditor of the procedures applied, the tests performed, the information obtained, and the pertinent conclusions reached in the engagement. Examples of working papers are audit programs, analyses, memoranda, letters of confirmation and representation, abstracts of company documents, and schedules or commentaries prepared or obtained by the auditor. Working papers also may be in the form of data stored on tapes, films, or other media. .04Factors affecting the auditor's judgment about the quantity, type, and content of the working papers for a particular engagement include (a) the nature of the engagement, (b) the nature of the auditor's report, (c) the nature of the financial statements, schedules, or other information on which the auditor is reporting, (d) the nature and condition of the client's records, (e) the assessed level of control risk, and (f) the needs in the particular circumstances for supervision and review of the work. Content of Working Papers.05The quantity, type, and content of working papers vary with the circumstances (see paragraph .04), but they should be sufficient to show that the accounting records agree or reconcile with the financial statements or other information reported on and that the applicable standards of field work have been observed. Working papers ordinarily should include documentation showing that—
Ownership and Custody of Working Papers.06Working 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. .07Certain of the auditor's working papers may sometimes serve as a useful reference source for his client, but the working papers should not be regarded as a part of, or a substitute for, the client's accounting records. .08The auditor should adopt reasonable procedures for safe custody of his working papers and should retain them for a period sufficient to meet the needs of his practice and to satisfy any pertinent legal requirements of records retention. Effective Date.09This section is effective for engagements beginning after May 31, 1982. Footnotes (AU Section 339A — Working Papers): This section amends section 230, Due Professional Care in the Performance of Work, paragraph .04, by deleting the second sentence of that paragraph. This section does not modify the guidance in other Statements on Auditing Standards, including the following:
[Footnote revised, May 2001, to reflect conforming changes necessary due to the issuance of Statement on Auditing Standards No. 94.] However, there is no intention to imply that the auditor would be precluded from supporting his report by other means in addition to working papers. What matters affect the form and content of working papers?Factors affecting the auditor's judgment about the quantity, type, and content of the working papers for a particular engagement include (a) the nature of the engagement, (b) the nature of the auditor's report, (c) the nature of the financial statements, schedules, or other information on which the auditor is reporting ...
What are the form and content of working papers?Working papers should be sufficiently complete and detailed so as to provide an overall understanding of the audit. They should contain information on planning the audit, the nature, timing and extent of the audit procedures performed and the results and conclusions from the procedures.
What are the factors determine the form and content of audit documentation?The form, content and extent of audit documentation depend on factors such as: The size and complexity of the entity. The nature of the audit procedures to be performed. The identified risks of material misstatement.
What are the key features of working papers?Contents of Working Papers. The name of the client.. The period covered by the audit.. The subject matter.. The file reference.. The initials (signature) of the member of staff who prepared the working paper and the date on which it was prepared.. |