This document discusses audit documentation and working papers. It defines audit working papers as the principal record of auditing procedures applied, evidence obtained, and conclusions reached. It notes that working papers serve several purposes including planning and performing the audit, supervising and reviewing audit work, and gathering evidence to support the auditor's opinion. The document also describes the different types of working papers, including permanent files which contain historical data, and current files which contain all documentation for the current year audit. It addresses ownership, confidentiality, and exceptions for accessing working papers.

1. TOPIC 6: AUDIT DOCUMENTATION
References: Chapter 7
AUD390 2011
AUDITING AND ASSURANCE
SERVICES
IN MALAYSIA

2. LEARNING OUTCOMES
AUD390 2011
 TYPES OF WORKING PAPERS/FILES
 INDEXING, AUDIT CROSS-FOOTING AND
EXTENSION
 CONTROL AND RIGHTS TO THE AUDIT WORKING
PAPERS
 CONFIDENTIALITY

3. AUDIT WORKING PAPER
AUD390 AUDITING DIA
 Def… the principal record of auditing procedures
applied, evidence obtained, & conclusions reached by
the auditor in the engagement
 It should include:
› The information the auditor consider necessary to
conduct the audit
› The information needed to prepare an audit report
 Objective:
› The aid to auditor in providing reasonable
assurance that an adequate audit was conducted in
accordance with auditing standards

4. Cont…
AUD390 AUDITING DIA
 Function of Audit WP
 Planning and performing the audit
 Supervising and reviewing the audit work
 Gathering evidence and providing essential support
for the auditor’s opinion, including evidence that the
examination was conducted in accordance with the
auditing standards.

5. TYPES OF AUDIT WORKING
PAPER
AUD390 AUDITING DIA
 Permanent Files
 Def … Data of a historical or continuing nature pertinent
to the current audit
 It include:
Extract or copies of such company documents of
continuing importance as the articles of incorporation,
bylaws, bond indentures & contracts
Analysis from previous years of accounts that have
continuing importance to the auditor
Information related to the understanding of internal
control & assessment of control risk
The results of analytical procedures from previous
years’ audits

6. Cont…
AUD390 AUDITING DIA
 Current Files
 All audit documentation applicable to the year under audit
 It include:
Audit Programs
Auditing Standards require a written audit program for
every audit
General Information
Documents to support audit for current year
E.g. audit planning memos, abstracts or copies of
minutes of the BOD meeting, abstract or contracts or
agreements not include in the permanent file, etc.
Working Trial Balance
A listing of the general ledger accounts & their year-end
balances
Supporting Schedules
E.g. analysis, trial balance or list, reconciliation of
amounts, test of reasonableness, summary of

7. TO THE AUDIT WORKING
PAPERS
AUD390 AUDITING DIA
 The ownership: the property of the auditor
 Part A-5 of the MIA By-Laws (Code of Professional
Conduct & Ethics) highlighted that there is a need to
maintain a confidential relationship with the client
 Exception:
 Subpoenaed by a court
 Used as part of MIA approved peer review program
with other CA firms

8. TUTORIAL QUESTIONS
AUD390 AUDITING DIA
1. Differentiate between ‘permanent audit file’ and
‘current audit file’ and give 1 example of the
document contained in the respective files.
2. Briefly describe 3 purposes of preparing audit
working papers.