Audit Working Papers include those papers and documents, which consist of details about accounts, which are under audit. They are the written, private materials, which an auditor prepares for each audit. They describe the accounting information, which he obtained from his client, the method of examination used, his conclusions and the financial statements.
According to Prof. Meigs,
“The term working papers is a comprehensive one and includes all the evidences gathered by the auditor to show the work he has done, the methods and procedures he has followed and the conclusions he has developed “.
From an analysis of above two definitions, it is clear that the working paper should specify
• How the work was planned and supervised?
• How the internal control system was reviewed and its reliability was assessed?
• How the evidence was collected and what procedures were adopted to collect the evidence?
• Whether the testing performed provided sufficient competent evidential matter to enable to form a reasonable basis for an opinion or recommendation?
• Thus the working papers constitute a valid evidence of the work done in the current audit.
Objectives of Audit Working Papers
1. The working papers serve the auditor both as useful audit tool as well as a permanent record of the audit work performed.
2. They are useful to the auditor to control the current year’s audit work.
3. They constitute a reliable guidance for planning the future audit assignments.
4. A review of the audit working papers gives an assurance that the audit work is both accurate and complete.
5. The auditors arrange the data properly in the working papers. Hence, the data become more meaningful and useful for the purpose of the,audit.
6. Working papers are necessary to corroborate the work and the findings of all the audit staff.
7. The chief auditor is assured that the opinion is supported by the findings of their audit staff.
8. The working papers constitute complete and conclusive evidence in future as to the entirety and completeness of the audit work.