The term “Audit working paper” is a comprehensive written paper and document that contains detailed pieces of evidence gathered by the auditor to show the work that was done, the methods and procedures followed, and the conclusions upon which the opinion is based on.
Literally, whatever documents gathered or prepared by an auditor during the course of an audit constitute audit working papers. However, the working papers can be in two forms, these are;
✅Working papers prepared by the auditor himself, like an audit notebook, audit program, details of queries made, and their explanations thereof.
✅Working papers collected by the auditor from the client, like the schedule of debtors and creditors, management representations, confirmations, etc.
It must be noted that a good working paper should be prepared in such a manner that an experienced auditor who is not having a prior connection with that audit understands the term of such audit engagement. Such working paper will include;
REASONS FOR PREPARING WORKING PAPER
There are many reasons for preparing a set of audit working papers and this will include;
✅Basis for planning the audit
✅Record the evidence accumulated and the results of the audit tests
✅Data for determining the proper type of audit report
✅Basis for review by supervisors and partners.
✅Evidence audit work is being performed according to ISA standards.
DID YOU KNOW?
An auditor can also use the working paper as a supporting document in cased he is being sued to court by his client for negligence of audit work.
As a practicing auditor, your working paper should be self-explanatory.
Finally, ask yourself today as an auditor, how good are your Audit Working Papers?