Working Papers Defined. While the finished product of an audit engagement is a well-written and clear audit report, working papers are the most important documents in an audit. This article is about audit working papers. Auditors should prepare and organise their working papers in a manner that helps the auditor carry out an appropriate audit service. The auditor should avoid preparing or accumulating unnecessary working papers, and should therefore avoid making extensive copies of the client's accounting records.
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Working papers are an essential part of every audit for effectively planning the audit, providing a record of the evidence accumulated and the results of the tests, deciding the proper type of audit report, and reviewing the work of assistants. Let's know the importance of audit working papers.
CPA firms establish their own policies and approaches for working paper preparation to make sure that these objectives are met. High-quality CPA firms make sure that working papers are properly prepared and are appropriate for the circumstances in the audit. Working papers are important because:
Working papers are an essential part of every audit for effectively planning the audit, providing a record of the evidence accumulated and the results of the tests, deciding the proper type of audit report, and reviewing the work of assistants. Let's know the importance of audit working papers.
CPA firms establish their own policies and approaches for working paper preparation to make sure that these objectives are met. High-quality CPA firms make sure that working papers are properly prepared and are appropriate for the circumstances in the audit. Working papers are important because:
Importance of audit working papers
- Working papers assist in the planning and performance of the audit.
- Working papers are necessary for audit quality control purposes.
- Working papers provide assurance that the work delegated by the audit partner has been properly completed.
- Working papers provide evidence that an effective audit has been carried out.
- Working papers increase the economy, efficiency, and effectiveness of the audit.
- Working papers contain sufficiently detailed and up-to-date facts which justify the reasonableness of the auditor's conclusions.
- Working papers retain a record of matters of continuing significance to future
- The preparation of the working papers is a means to give training to the audit clerks as to how to summarize the work done by them.
- The working papers enable the auditor to point out to the client the weakness of the internal control system in operation and inefficiency of the accountancy He may, therefore, be in a position to advise his client as to how to avoid such pitfalls.
- The working papers enable the auditor to prepare the report to be issued without much waste of time.
- He can know that his assistants had followed his instructions.
Audit Files And Working Papers Pdf
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