The audit team member who is directly responsible for an audit section in which working papers prepared by the client are included should sign off the audit working papers. In addition, all such working papers should be properly labeled as being prepared by the client. If the auditor needs to retain such working papers, it should be agreed upfront with the client regarding the form of the working papers and include this information in the audit timetable.īesides, the auditor should ensure that the working papers will contain all the necessary information when arranging for the client’s working papers. The audit team should attempt to obtain copies of these whenever possible. For working papers provided by the client, the date the working papers were received Audit working papers prepared by the clientĪ lot of times, the client may have already prepared the audit working papers required.The initials or signatures of the audit team members who prepared and reviewed the working paper and the date on which it was prepared.See also What are the Auditor Rights and Duties And Why They are so Important What should be included in audit working papers?Įach audit working paper needs to have the following information: (However, assessment needs to be made if auditors can rely on the work performed by them). It must either complement the auditor’s report in some way or provide the information needed for tax or other client-related statutory/regulatory purposes.Īnother circumstance that renders the preparation of audit working papers necessary is when it is not practical for the auditor to make copies of documents that the client, including internal auditors, have created as part of their routine activities or for the client to prepare the working document. The auditor should only decide to prepare a particular audit working paper when it is deemed necessary. It is required that the audit working papers be kept until the end of its retention period, which is usually seven years from the issuance of audit opinion. Any discussions held with the management and others of material nature should also be noted down on a timely basis. In the audit working papers, specific attributes of the items or subjects being tested should be recorded when documenting the nature, timing, and extent of audit procedures performed. Any significant matters arising during the audit, significant judgments made, and the conclusions.The results of the audit steps and evidence obtained.The nature, extent, and timing of the audit procedures performed to comply with ISAs and relevant legal and regulatory requirements.The audit working papers should be prepared on a timely basis and can allow an experienced auditor who has not been previously involved with the audit, to understand: Prove that the audit has been planned and performed based on ISAs and relevant laws and regulations.Support as sufficient and appropriate basis in the auditor’s report.Audit working papers are documentation prepared and organized by the auditor to perform a proper audit service.Īccording to ISA 230, Audit Documentation, the auditor’s objective is to prepare documentation that can:
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