When planning the audit, a special role is played by the working documents of the auditor. A sample of each paper is drawn up in accordance with established rules in practice. The information in the forms is confidential. Next, we consider the main types of working documents of the auditor.
general characteristics
The auditor's working document is a paper in which there are notes made by a specialist during the planning of the audit, in preparation for its implementation, generalization of the results. It may also contain information received from third parties, contractors of the inspected enterprise. The number and composition of the working documents of the auditor is determined individually in each case. Crucial in this will be the purpose of their design.
Appointment
In practice, the following working documents of the auditor are used:
- By fixed assets . They contain information about the property of the inspected enterprise, its movement, value, expenses, accounting, receipt and other operations with valuables.
- For planning checks. They reflect the main stages of the audit.
- Confirmation of the procedures.
- Containing information on verification of reporting and information summarizing the results.
Working documents are also prepared for:
- Ongoing verification of compliance with the verification program and plan.
- Ensuring the validity and legality of the inspection.
- Quality control inspection.
- Formation of the audit report.
- Monitoring the activities of a specialist and justification of remuneration.
- Documentation of the risk defined by the auditor with reduction of its value.
Determining factors
The quantity, content, forms of documents are selected depending on:
- Qualifications of a specialist.
- Terms of the contract with the inspected company.
- Previous experience.
- Internal standards and rules that guide the specialist.
Auditor Working Paper Form
Regardless of the purpose of use, general requirements are imposed on securities. First of all, any working document of the auditor should reflect the full and specific information. This is necessary so that it is easier for another specialist to understand the essence of the measures taken.
Each working document of the auditor is drawn up directly in the audit process. Filling of papers after or before the inspection is not allowed. When completing the documentation, the auditor needs to consider not only the information that relates to the period being audited, but also information for previous time periods. The papers should contain key data on which the specialist should express an opinion. It is necessary that they cover the most significant areas of inspection and the tasks set and implemented by an authorized person.
The documentation should allow the analysis of reporting in accordance with established criteria. The papers reflect the state and assessment of internal control in the organization, as well as the level of trust in it. They record the procedures performed related to the verification and analysis of the accounting of the enterprise, compliance with financial policies, compliance of reporting with statutory standards, principles and requirements.
Information is entered into each working document of the auditor so that it can subsequently be easily understood. A mandatory requirement is an indication of the date and place of registration, the name of the specialist. The documents must bear the signature of the auditor, an identification code. Pages are numbered. In addition, the specialist indicates the sources from which he took information for paperwork, applications that record the economic and financial operations of the enterprise.
Classification
It is carried out according to different criteria. Depending on the period of maintenance and execution, documents can be long-term or short-term use. According to the sources and method of obtaining the paper, they are divided into those received from third parties or from the inspected enterprise, as well as those issued by the specialist himself. Depending on the purpose, the documents may be:
- Sightseeing.
- Verification.
- Informative.
- Confirming.
- Comparative.
- Estimated.
- Analytical.
According to the form of presentation, graphic, text, tabular and combined forms are distinguished. Depending on the design technique, the paper may be handwritten or filled using a PC.
Auditor Working Papers: Example
The papers used by the specialist during the audit reflect various information. In accordance with this, allocate paper with data:
- Legal nature.
- About the management and employees of the company.
- On the structure and organization of the company.
- On the economic foundations of the enterprise. Such documents describe the financial policy of the company.
- About the accounting system. These include reporting, primary securities, etc.
- On organizational and functional tasks. These include plans, audit programs, lists of activities and procedures, etc.
- About risk assessment. These include calculations.
- By checking individual indicators and articles of the annual reporting of the enterprise.
Working documents should also include an audit report, recommendations and suggestions, and specialist correspondence.
Content Features
The specialist should reflect in the documentation information about:
- Planning check.
- The nature, timing and extent of the measures taken, their results.
- Conclusions that were formulated on the basis of the received and analyzed materials.
The papers should include a rationale for all the key points by which the final opinion will be expressed.
Nuances
The content and form of documentation determine:
- The nature of the job.
- The requirements that the conclusion must comply with.
- Features and nature of the inspected subject.
- Use of control techniques and methods during the verification process.
Working documents are property of the audit firm. She has the right to take any actions with them at her discretion, if they do not contradict the law, other standards and professional ethics. Some documents or extracts from them may be submitted to the inspected enterprise. But they cannot be a substitute for accounting records.
Storage
After the audit is completed, the documentation is to be submitted to the audit company archive . Papers are stitched, folded into folders, set up for each inspection separately. In the working documentation contained in the files "permanent and current dossiers", the pages are numbered, and their number is indicated on special sheets. Regular customer papers are stored in one set. Documents in such folders are distributed in chronological order. Files of the “special” and “permanent” dossiers may be transferred from one year to another. The leading specialist or other auditors subordinate to him must necessarily indicate on the documents the changes, if any, the date the corrections were made. Entries are confirmed by signatures. The safety of documents, execution, their transfer to the archive is ensured by a leading specialist responsible for a certain check.
Additionally
Each document must contain identification parameters. These include, in particular, the name of the inspected person, the inspection period, and so on. In addition, the papers must provide identification indices, as well as cross-references. This provides a quicker picking them into files. At the end of each folder, full name is indicated. Responsible employee and his signature. Documentation can be stored on paper or electronic media, as well as on film. The term of the content of papers submitted to the archive is not less than five years.