2.working Papers in Auditing, Reading and Workshop
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ScribdTranslations2.working Papers in Auditing, Reading and Workshop
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ScribdTranslationsWORKING PAPERS OF THE EXTERNAL AUDITOR
By: CPA Byron Giovanni Cifuentes Garcia
Audit Manager
Crowe Horwath
Public Accountants and Auditors
According to the International Auditing Standard - IAS - and specifically the
number 230 'Audit Documentation', the auditor must prepare the working papers
I work in a timely manner, including all the necessary documentation and
suitable to support the opinion of the financial statement audit.
Audit working papers
Set of physical documents or electronic files that contain the
evidence obtained by the auditor, as well as audit procedures and tests
applied with the aim of supporting the recommendations and the audit opinion
of the financial statements.
2. Purpose of the working papers
Help plan and conduct the audit.
Maintain an organized and systematic record of the work performed.
Help the members of the auditing team responsible for the
supervision to direct and review the audit work.
Document the auditor's work for the issuance of the audit report.
Allow an auditor, with experience, to carry out control reviews
quality and inspections both internally, in accordance with NICC 1
International Quality Control Standard 1, for audit firms.
Leave evidence of the reviews of the figures in the financial statements.
3. Ownership and Custody of the working papers
The working papers are the property of the independent auditor or firm.
audit, for containing the evidence of the audit work carried out on
a certain company. Therefore, their care and custody will be the responsibility of
the auditors and, to avoid the risk of being lost or used
improperly by third parties. The custody period of the working papers of
the audit must be no less than 5 years, according to what is indicated in ISA 230, in the paragraph
A23.
4. Classification of working papers
The auditor's working papers or auditing firm are usually classified
4.1 Permanent File
It constitutes a file of papers where we can find the documents.
related to the company's background, incorporation, organization, operation,
minutes, patents, manuals, legal and accounting regulations, and financial information,
among others.
4.2 Current working papers (continuous or period file)
The current working papers or continuous file or of the period are those that
they develop and obtain during the course of the audit; in them evidence is left of the
planning process and the audit program; of the study and evaluation of
internal control; of the analysis of balances, movements, operations, of the record of the
nature, scope and opportunity of audit procedures; diagrams
flow and narratives of the accounting system, commitment letters, checklists
and correspondence (including emails) related to matters
significant. All of this must be gathered in a logical order to produce a
audit file.
The working papers referred to as audit schedules are regularly
they classify in the following way:
4.3 Centralizing notes
4.4 Summary sheets
4.5 Analytical statements
4.6 Sub-analytical statements
Centralizing bills:
They are the statements that contain the summary of the financial statements of the
company. Auditors or audit firms divide these sheets into groups
below are two scenarios of how they can classify them:
Scenario 1
Centralizer of assets, liabilities, and equity.
Revenue, cost, and expense centralizers.
Scenario 2
Asset centralizer
Liability and equity centralizer
Centralizers of income, costs, and expenses
Summary certificates:
They are the documents that contain a summary of the figures, procedures and
conclusions of the reviewed area, for example, cash and banks, accounts receivable,
fixed assets, accounts payable, equity, income, costs and expenses among others.
Analytical and sub-analytical statements:
They are the documents that contain the auditor's work where the ...
analysis of the balance of the accounting accounts, recalculation of data, operation or
movement of the reviewed area; it details the information obtained,
tests conducted and the results obtained, for example, analysis of collections and
subsequent payments, loan interest recalculation, confirmations sent and
received, etc.
5. Minimum requirements in audit forms
The working papers and centralizing schedules, summary, analytical and sub-
Analytics must contain at least the following:
The name of the customer (company), usually on the first line, side
left.
The title of the working paper
The account name and number (if applicable)
The date (end of the year or period covered by the working papers)
Identification of the person preparing the working paper and the date of
preparation of the same
Identification of the person reviewing the working paper and the date of the
review or supervision of it
Audit marks
Audit scope
Conclusions of the audit
6. Reference and use of audit marks
The use of references and marks in work papers, both physical and in files
electronic, help to maintain better control in the audit work in a
simple and practical way, therefore the following procedure must be considered:
Place the index of the working papers following the system in use of
auditor or the auditing firm, for example, in the upper right part,
in red or blue pencil, (or in the color established by your signature).
It is not always necessary to put an index on every page of a set of
several sheets, as long as the sheets contain the page number of
correlative form; for example, we are going to refer to the report of
inventory stock exists and there are 30 pages, we placed A-25 on all of them, already
the report has all the pages numbered.
The amounts that appear in more than one working paper must be subject to
of cross-references.
When an amount goes to another working paper, write the reference.
crossed out below or to the right of the number.
When an amount comes from another working paper, write the reference.
above or to the left of the number.
The brands are used as footnotes to indicate the
application of audit procedures, conclusions, and others
explanations about amounts or other information in the working papers.
In the case of the signatures, if they have a brand index, it will not be necessary.
include an explanatory legend of the marks used at the bottom of the page.
Activity
The following activity should be carried out in the usual work groups, this
the activity must be submitted in the next class:
After reading the previous document, you must make the necessary inquiries.
necessary and respond:
1. Prepare a personal definition of working papers.
2. What is the basic content of an audit report (Aspects that must be included)
container)?
What are summary certificates and analytical certificates, attach an example of each.
one?
4. Who owns the working papers? What happens with the
property of the working papers if the auditor works for a firm of
audit with an employment contract or service provision?
5. What are audit marks and references in the working papers, give
examples?
The working papers must be kept for a period of no less than five (5)
Years, what should be done with the working papers after compliance with
that period?
7. You, as a financial management professional, are hired by a
audit firm to assess the financial management of a commercial entity; in
In this case, should you prepare work papers? Support your answer.
