Firm’s audit working papers or arranges that it can have unrestricted access to them on request. While a registered auditor may make such arrangements for its own purposes, the arrangements under the regulation are so that a review team (either the Institute’s Quality Assurance Department. Audit working papers are tool for accomplishing the purpose of audit. Audit working papers record evidence gathered by the auditor which will help him in arriving at his conclusions. Also they act as support for work accomplished. Working papers are tool for accomplishing the purpose of audit.

• Audit Working Paper
• Audit Files And Working Papers Cxc

The audit file will follow the structure below:

• Planning

• Audit work carried out on each section of the financial statements (e.g. Non Current Assets, Inventory)

• Completion and review

Auditors must document

1. What items were tested

2. Who did the testing

3. When was the testing

4. Who reviewed the work and when

Discussion of all significant matters with management must also be documented

Audit Working Paper

Includes

1. Planning Documentation (Strategy, plan, risk analysis)

2. Audit programmes

3. Summary of significant matters

4. Letters of confirmation / representation

5. Correspondence

Permanent and current audit files

Permanent audit files contain information of continuing importance to the audit.

The permanent file will include

• Names of management, those charged with governance, shareholders

• Systems Information

• Business and Industry background

• Title deeds

• Contracts

• Copy of the company's legal constitution

• Board minutes of continuing relevance

• Previous years' signed accounts, analytical procedures and management letters

• Engagement letters

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Audit Files And Working Papers Cxc

Current audit files

contain information which is relevant to the current year's audit.

They contain:

• Financial statements

• Accounts checklists

• Management accounts details

• Reconciliations of management and financial accounts

• A summary of unadjusted misstatements

• Report to partner including details of significant events and misstatements

• Review notes

• Audit planning memorandum

• Time budgets and summaries

• Representation letter

• Management letter

• Notes of board minutes

• Communications with third parties such as experts or other auditors

Current audit files also contain working papers covering each audit area

These should include the following:

• A lead schedule including details of the figures to be included in the financial statements

• Problems encountered and conclusions drawn

• Audit programmes

• Risk assessments

• Sampling plans

• Analytical procedures

• Details of substantive tests and tests of control