Question

3.3 record the audit process in an appropriate manner

Lucy has also come to know of working papers. She is not too sure why they should be so important.

Required - Explain the following:

a. Two types of working papers.

b. 5 reasons auditors need working papers.

Answer 1

Working papers are the most important documents in an audit,working papers which are developed y the auditors summarizes their work including audit evidences obtaine, tests performed and conclusions drawn related to audit objectives

as per Audit standard 2330 the internal auditor must maintain sufficient, reliable , relevant and useful information to support the engagement results and conclusions.

we have different types of audit working papers

Interview summaries

these are the working papers that are related to the intervies conducted by the auditor. The primary purpose of interview summaries is to Find out and highlight the relevant information coming out of a meeting with a manager or employee.

Work sheets, they summarizes the audit tests for specific sample of transactions.Additional audit procedures performed to obtain audit evidence, audit evidence obtained, and conclusions reached, and their effect on the auditor’s report all these information should be noted in work sheets.

Importance of Audit working papers

They are necessary for audit quality control purposes

They are the evidence to prove that an effective audit has been carried out

They contain sufficient and detailed information

They help the future auditors to know how the audit was conducted , observations made and to know wether the identified errors are rectified are not.

They provide assurance that the work delegated by the principal auditor has been properly carried out

They help us to increase the efficiency,economy and effectiveness of audit