These are materials that the auditor prepares or obtains in connection with the performance of an audit. They are records kept by the auditor on the procedures applied, information obtained in the course of audit and conclusions drawn using the audit engagement.
A sound system for filling audit work papers is essential for an efficient audit. They should be sufficiently complete, appropriate /and detailed to provide evidence of the work performed and support conclusions reached by the auditor.
What constitutes audit papers?
Copies of financial statements and other important documents prepared by the auditee and the auditor.
1) Partnership deed.
2) Notes taken by auditor in areas of weaknesses in internal control system.
3) Audit evidence gathered according to observations made and personal judgement.
4) Letter of representation obtained from auditee.
5) Information obtained from experts in areas that subjective and technical.
The need for audit working papers
1. They are used as the basis of forming an audit opinion and assessment.
2. Used as a basis for planning the current year audit.
3. They are collected to verify the procurement operations of the entity.
4. They are used as a means of controlling the audit via reviews.
5. They are used as evidence of work done especially where the auditor is sued for negligence.
6. They enable the auditor to evaluate the work of audit teams to assess if they are able to collect sufficient and detailed working papers to support conclusions reached.
Other financial statements
1. Statement of financial position.
2. Statement of comprehensive income.
3. Statement of changes in equity.
4. Statement of cash flow.