Working Papers Flashcards
What is the purpose of working papers and what do they consist of?
Link between the field work and the audit report.
Facilitates writing of report
Substantiate evidence explains in detail findings within report
Coordinates and organizes all phase of the audit work
Document audit steps
Support your conclusion and opinions
Consists of auditors notes
Documenting conferences/meetings
Physical observations
Documents gathered during audit (invoices, minutes, contracts)
Provides a permanent historical record
Describe how you would organize the audit package?
Audit Report Section
Final Report (Acceptance Letter or Review Memo)
Auditee’s response
Draft Report
Summary of Findings (point sheets)
Preliminary Section
General review (Background research, system survey)
Preliminary correspondence (meeting minutes/agenda’s, e-mail’s, phone logs)
Audit Plan (memorandum)
Entrance Conference
Field Audit work paper Section
Exit Conference
Internal Control
List the elements of a working paper?
Date and signed by preparer
Reviewed by supervisor
Heading (Auditee, Audit Period, Audit ID)
Purpose of working paper (why you are preparing w/p)
Source (source for all data)
Scope (scope of audit work, sampling methodology and universe)
Procedures/Analysis
Findings
Conclusion (must relate to purpose)
Numbered Index (right hand corner/red)
Cross-references to sources or audit program (positioning/red)
Tickmarks and legends
What is the purpose of a point sheet?
Point sheets summarize the audit findings, discussions with auditee, the conclusions reached, and the auditor’s recommendations, it also facilitates writing of the audit report. Elements are:
Observation
Judgement criteria
Effect
Cause
Discussions with auditee
Conclusion
Recommendation
Name two types or working papers that are associated with every audit and name three examples for each type?
Documents that help to manage an audit:
- Audit Plan
- Audit Program
- Point sheets
Documents that provide evidence supporting the conclusions:
- Representation letters
- Questionnaires/flowcharts
- Data analysis worksheets
What constitutes a finding?
The condition – what’s wrong
The criteria – what are requirements
The cause – how did it get that way
Adverse effect – what did or could result from issue
