WORKING PAPERS.pptx used to know about meaning definition concept
Download as PPTX, PDF0 likes11 views
highly qualified Content from the Professor
WORKING PAPERS.pptx used to know about meaning definition concept
- 1. DEFINITION WORKING PAPER According to the Institute of Chartered Accountants of India, Working papers must include audit Programme, queries, explanation given for the queries, schedules of important items like depreciation, inventories, confirmation from third parties, certificates issued by the management, banks etc.
- 2. FEATURES state a clear audit objective, usually in terms of an audit assertion. state the year/period end, so that the working paper is not confused with documentation belonging to a different year/period. It should state the full extent of the test. to determine the sufficiency of the audit evidence provided by the working paper. state the results of the test, without bias and based on the facts documented. It should be signed by the person who prepares it
- 3. TYPES OF WORKING PAPERS Current file Permanent file.
- 4. Contents of current file Correspondence relating to acceptance of annual appointment. Evidence of the planning process of the audit and audit Programme. Analysis of transactions and balances. Copies of communication with other auditors, experts and third parties. Letters of representation or confirmation received from the client. The working trial balance, bank reconciliation statement. There fore a current file document with all such information required for a single period audit.
- 5. Contents of permanent file Information concerning the legal and organizational structure of the entity such as Memorandum and Articles of Association. Extracts or copies of important legal documents, agreements and minutes. Analysis of significant ratios and trends. Note regarding significant and accounting policies A short description of the type of business carried on and the places of business.
- 6. PURPOSE Planning, organization, control and review of audit work: Support for auditor’s opinion: a proof that generally accepted auditing standards and practices have been duly followed in the conduct of the work. Division of Labour: Working papers help in appropriate division of work among the audit staf Use as permanent record: Working papers constitute a permanent record of the auditing procedure employed, and the financial records examined. Basis for evaluation and training of audit staff: his staff have done their job as per the required standards. Basic for further work: In the course of his examination the auditor may come across certain situation or conditions in the pattern of management of the clients business.
- 7. CONTENTS Working papers should record the auditors planning, the nature, timing and extent of the auditing procedures performed and the auditing procedures from the evidence obtained. Working papers should be suffering completed and detailed to enable an auditor to obtain on overall understandings of the audit. All significant matters which require the exercise of judgment with the auditor’s conclusion there on should be included in the working papers. The form and content of working papers are affected by matters such as: The nature of the engagement. The form of the auditor report. The nature of the clients business. The nature and conditions of the client’s records. Working papers should be designed and properly organized to meet the circumstances and the Auditors need for each individual audit.