Audit working papers refer to the documents that prepare by or use by auditors as part of their works. Those documents include the summary of the client’s nature of the business, business process flow, audit program, documents or information obtained from the client as well as audit testing documents.

Audit working papers are sometimes referred to audit documents that they are very imported part of audit works. These documents are evidence that supports auditors to make their conclusion on the financial statements.

For example, the auditor has an engagement with a company to audit the financial statements. Before signing the audit engagement letter, the auditor requires to obtain some information about the client, do the client’s due diligence, and assess whether they should reject or accept the engagement. In this case, if the engagement is readily signed, that means assessment is already done and accepted.

The documents that auditors use to documents client nature of the business, perform client due diligence, as well as assessment, are the example of audit working papers.

Audit working papers also include the words or excel files that auditors used to documents the client’s key internal control over financial reporting, nature of the business, as well as audit test’s working paper.

In general, audit working papers are obtained or prepared by audit staff or audit assistant. These documents are then reviewed by another auditor that has more experience as well as an authority such as audit managers or audit partners.

Audit working papers need to be filed in the correct audit files either the current audit file or permanent audit file.

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There are many types of form of audit working papers and here are the list,

Form and content of working papers:

Audit working papers vary depending on many factors include:

  • The size and complexity: The size and complexity of the entity can be so much different from one client to another. If the complexity of the entity nature of business is different, then the form is also different. For example, more samples are selected for a large entity and different information is obtained for the complex nature of business.
  • The nature of the audit procedures to be performed: For example, some testing is very straightforward and some testing is very complicated.
  • The identified risks of material misstatement. For example, if the risks of material misstatements found to be significant, the extent of audit works should be large.
  • The significance of the audit evidence obtained.
  • The nature and extent of exceptions

Each of the audit working papers should have a proper subject, objective, name of the client, date of the working paper, the period of audit, sources of evidence, staff who prepare, and staff who review.

Reference to relevance working paper should properly cross. The working paper should properly sign by the preparer and reviewer.


Here is the example of audit working papers:

  • Audit documents on client nature of business
  • Audit documents of team meeting
  • Evidence of the planning process including audit programs and any changes thereto
  • Evidence of the auditor’s consideration of the work of internal audit and conclusions reached
  • Analyses of transactions and balances
  • Analyses of significant ratios and trends
  • Identified and assessed risks of material misstatements
  • A record of the nature, timing, extent, and results of audit procedures
  • Evidence that the work performed was supervised and reviewed
  • An indication as to who performed the audit procedures and when they were performed
  • Details of audit procedures applied regarding components whose financial statements are audited
  • Result of audit testing on depreciation expenses
  • Result of  audit testing on salaries expenses
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Review of audit working paper:

Audit working paper is very important for audit conclusion, therefore, the auditor needs to make sure the good quality of audit working papers. This requires proper review and supervision from the person who has better experiences and knowledge.

For the best practice, audit working paper should review by experience level. It is part of the audit work to prove that auditor obtains the audit evidence to support their opinion in the audit report.

Importance of audit working papers:

Managing audit working paper properly is part of the quality control to make sure that auditors themselves are compliant with the applicable law and regulation. Auditors might also subject to be reviewed by the local authority, and peer firm to access the quality of audit work.

Keeping audit working properly help the auditor to deal with this problem as well as help them to assess whether they themselves perform at the acceptable quality.

Auditor required, as per standard, to make sure that all are sufficient and appropriate audit documents are obtained and they could prove this to the relevant parties by documenting, recording, and keeping audit working papers.

The auditor might prepare their own workings papers for their recordings, testings, and reporting. Also, the auditor might also obtain the papers that prepare by audit clients as well as from the third party.

The reliability of these papers is different. Normally, the evidence that prepares by the auditor is more reliable than the one that obtains from the third party and the one that prepares by the client is less reliable than others.

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Working papers are very important for auditors to support the audit opinion. It proves that auditors perform an audit assignment based on applicable standards, and as well as policy.

These working papers should state the proper information like source of the documents, the period of audit, who prepared the working papers, objective obtained or prepared the working papers and the conclusion.

Audit working papers should also properly review by the more experiences auditors and filling correctly in the correct types of files.

Written by Sinra