The auditor should document matters that provide evidence to support the audit opinion and that the audit was conducted in accordance with standards. Working papers assist with planning, performing, supervising, and reviewing the audit. They include information on procedures, results, and conclusions. Working papers should provide an overall understanding of the audit to another auditor and should be retained securely according to professional standards.

1. Atta-ur-Rahman Arif

2. The auditor should document
matter which are important in
providing evidence to support
the audit opinion and
evidence that the audit was
carried out in accordance
with ISAs.

3.  The material (working papers)
prepared by and for or obtained
and retained by the auditor in
connection with the performance of
audit.
 Working papers may be in the form
of data stored on paper, film,
electronic media or other media.

4. Working Papers are the written,
private material which an auditor
prepares for each audit to
describe the accounting
information received from his
client, the methods of examination
used, conclusions drawn and the
financial statements prepared.

5. Working Papers:
• Assist in the planning and performance of
the audit
• Assist in the supervision and review of the
audit work
• Record the audit evidence resulting from
the audit work performed to support the
auditor’s opinion
• Assist in the absence of original records to
support professional opinion

6. • Tool to defend from any charge or suit against
the auditor for negligence
• It helps in organizing and coordinating of all
phase of the audit work
• Enable the auditor to supervise the work of
audit assistants adequately
• Provides the permanent records of the audit
procedures used and the client data examined
• Provide evidence that a proper evaluation of
internal control was carried out by the auditor

7. The auditor should prepare working
papers which are sufficiently complete
and detailed to provide an overall
understanding of the audit.
It should include information on
planning the audit work, the nature,
timing and extent of the audit
procedures performed, the results
thereof, and the conclusions drawn
from the audit evidence obtained.

8.  Form and content of working papers are
affected by matters such as:
 Nature of Engagement
 Form of the Auditor’s Report
 Nature and Complexity of Business
 Entity’s Accounting and Internal
Control System
 Direction, supervision and review of
the work performed by the assistants
 Audit Methodology and Technology
used

9. The extent of working papers is a
matter of professional judgment
since it is neither necessary nor
practical to document every matter
the auditor consider.
Auditor should consider what would
be necessary to provide another
auditor with an understanding of the
work performed and the basis of the
principle decisions taken out.

10. 1. Trial balance, adjusting entries ,
schedules , reconciliation, summaries of
data, comments and explanations.
2. Analysis of transactions and balances
3. Analysis of significant ratios and trends.
4. Information about the legal and
organizational structure of the entries .
5. Copies of important legal documents ,
agreements and minutes.

11. 6.Information about the industry,
economic environment and
legislative environment within which
the entity operates.
7.Evidence of the planning process
including audit program and any
change thereto.
8.Evidence of the auditor's
understanding of the accounting and
internal control systems.

12. 9.Evidence of internal control risk
assessment and any revision thereto.
10.Evidence of the nature , timing , and
extent of audit procedure performed
and the results of such procedures.
11.Evidence of the auditor’s
considerations of the work of internal
auditing and conclusions reached.

13. 12.An indication as to who performed the
audit procedures and where they were
performed.
13.Copies of communication with other
auditors and third parties.
14.Copies of letter or notes concerning
audit matters discussed with the entity.
15.Letters of presentation from entity
16.Copies of financial statements and
auditor’ report

14. 1. Permanent File:
All documents containing background
information about client of permanent
nature are filed on the file. This file
should carried forward from year to year
and should be kept up to date .
2. Current File:
It contains the audit program and
working papers relating to the year under
review.

15. Copies of memorandum and article of
association
Extract from important agreements
Particulars of title deeds and similar
documents
Address of registered office, factories
and branches
 An organizational chart of the
business.

16. Flow charts and specimen of the
client's accounting documents
A list of accounting records
Declaration concerning the
submission of accounting
manuals, instructions for the
preparation of the accounts and
index of accounts classification

17.  Internal control questionnaire
 A copy of letter of engagement.
 Records of audit work on statutory
records
 Record of inspection of title deeds, lease ,
 Notes of internal audit.
 Copy of instructions to banker issued by
the client.
 Statement of reserves.
 Note of principle accounting policies .

18. The auditor should adopt appropriate
procedures for maintaining the
confidentiality and safe custody of the
working papers and for retaining them
for a period sufficient to meet the
needs of the practice and in
accordance with the legal and
professional requirements of record
retention.

19. Working papers are the property
of the auditor. Although portions
of or extracts from the working
papers may be made available to
the entity at the discretion of the
auditor, they are not a substitute
for the entity’s accounting
records.