The audit working papers constitute the link between the auditor’s report and the client’s records. Documentation is one of the basic principles listed in AAS 1. According to AAS 3 (reproduced in Appendix I), documentation refers to working papers prepared or obtained by the auditor and retained by him in connection with performance of his audit. The objects of an auditor’s working papers are to record and demonstrate the audit work from one year to another. Therefore, working papers should provide for :
- means of controlling current audit work;
- evidence of audit work performed;
- schedules supporting or additional item in the accounts; and
- information about the business being audited, including the recent history.
Working papers are varied in nature but the foundation of all working paper can be traced to :
- the basic constitutional documents like Memorandum and Articles of Association, Partnership Deed, Trust Deed, etc.;
- the contents of the minute books;
- the contents of the balance sheet and the profit and loss account; and
- the letter of engagement.