Audit Working Papers

(Sangcal, 2001)

Nature of Working Papers

The auditor should document matters which are important in providing evidence that
the audit was carried out in accordance with generally accepted auditing standards.
Documentation refers to the working papers prepared or obtained by the auditor and retained
by him, in connection with the performance of his audit (SASP No.7)
SASP No. 7, describes working papers as the records kept by the auditor of
(1)
(2)
(3)
(4)

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.
Purposes of Working Papers
1. To provide the principal support for the auditors report, including the auditors
representation regarding observance of the standards of field work, which is implicit
in the reference in the report to generally accepted auditing standards.
2. To aid the auditor in the conduct and supervision of the audit. The audit working
papers assist auditors in several major ways:
a. They provide a means of assigning and coordinating audit work;
b. They aid seniors, managers, and partners in supervising and reviewing the
work; and
c. They aid in planning and conducting future audits
3. To provide information useful in rendering additional professional services, such as
preparing income tax returns, making recommendations for improving internal control
and providing management advisory services.
Contents of Working Papers

1. The quantity, type and content of working papers for a particular engagement are a
matter of judgment. The auditors judgment may be affected by the following factors:
a. The nature of the engagement
b. The nature of the auditors report
c. The nature of the financial statements, schedules, ot other information on
which the auditor is reporting
d. The nature and condition of the clients records
e. The assessed level of control risk
f. The needs in the particular circumstances for supervision and review of the
work
2. The quantity, type and content of working papers should be sufficient to show that the