Why Is The Audit Papers Prepared?
The audit papers form the only existing link that connects the auditor’s report works to that of a client’s records. This course of making the audit working papers can be better termed as the documentation process. Thus, documentation can be stated as the working papers that are readily arranged by the auditors and maintained by him on account of his auditing performance and records. The main objective behind these working papers is to preserve the annals and to present this work from current year to the coming year.
However, it is important that these documents satisfy the requirements of
- Regulating the ongoing auditing project
- As a proof of work maintained on the auditing basis
- Subsidiary schemes or the extra’s added while auditing was done on the financial accounts
- It should contain all the data regarding the business being audited and also a brief note on its recent history
Even though there exists a variety of forms for the papers being presented, the groundwork remains the same for all. Learn more about it as it includes
- The elementary titles like the memorandum, reference articles, partnership charter and so on
- The points with regard to the minute list
- The fillings from the balance sheets and the corresponding gains and loss accounts
- And finally, the writings of engagement
The significance of audit working papers
- The auditing documentation provides a guidance framework that boosts the working manner of the staff members of the institution. Moreover, it lends an orderly working strategy that is easy for the faculties to adopt it for their official progress.
- Further, the auditor can assign timely schedules and working responsibility for the workforce that avoids confusions and makes things simple.
- Additional, they form a paper of evidence when the auditor is court filed for neglecting his duty even if it has never occurred.
- Apart from all these advantages, it also helps the auditor to effectively plan for examining the operation schedules of each entity of an organization.
The auditor should be capable enough to provide reasonable thoughts regarding the keeping of his working documents that must be preserved for a specified duration to satisfy the requirements of his professional practice or on reference to any legal liability.
Matters included in the working papers
As always, the substance of the documentation should cover all the stages of auditing right from the beginning like
- Planning for the audit,
- The nature of the audit performed,
- The duration and procedures of the auditing course,
- Finally, each and every evidence regarding the process and the derived conclusion.