Professional Documents
Culture Documents
Audit
Documentation
PSA 230 (Redrafted), “Audit Documentation”
“Audit file” means one or more folders or other storage media, in physical or
electronic form, containing the records that comprise the audit documentation
for a specific engagement.
LEAD SCHEDULE or TOP SCHEDULE is a working paper that shows the grouping
of related account balances.
3. Supporting Schedules and Analyses
SUPPORTING SCHEDULES are detailed schedules prepared by auditors in
support of specific amounts on the FS.
ACCOUNT ANALYSIS shows the activity during the period in a particular BS
Account. It starts with the beginning balance, shows the transactions
(additions and reductions) that occurred during the period, and concludes
with the ending balance.
OUTSIDE DOCUMENTATION
Much of the content of the working paper consist of the outside documentation
gathered by the auditors, such as confirmation replies, and copies of client
agreements.
Main Divisions of Audit Working Papers
PERMANENT FILE
Working papers in permanent files contain
information of continuing interest to the auditor.
These are intended to contain data of a historical or
CURRENT AUDIT FILE continuing nature pertinent to the current examination.
The current year working file is designed This contains the ff:
to support the assertion embodied in 1. Corporate charter
the FS. This contains the ff: 2. Analysis of business and industry
3. Copies of contracts
1. Original and draft of the report 4. Chart of Accounts
(FS, draft of auditor’s report, draft 5. Flowcharts and notes on the
of ITR) accounting systems and related controls
2. Audit plan and programs 6. Continuing analyses of fixed assets.
3. Working trial balance 7. Organization charts and excerpts from
4. Adjusting and reclassifying job manuals
8. Terms of capital stock and bond issues
journal entries
9. Result of analytical procedures from
5. Lead and supporting schedules previous year’s audit
6. General information such as 10. Excerpts from minutes of meetings
copies of minutes of meetings, 11. Labor-management agreement
agreements not included in 12. Information concerning related parties
permanent files, etc. 13. Description of complex business
transactions
14. Copies of pension plans, stock option
plans, and employee bonus plans
The Philippine Accountancy Act of 2004,
Section 29
provides that “All working papers, schedules and
memoranda made by a certified public accountant in
public practice and his staff in the course of an
examination, including those prepared and submitted by
the client, incident to or in the course of an examination,
by such CPA, excerpt reports submitted by a CPA to a
client shall be treated confidential and privileged and
remain the property of such CPA in the absence of a
written agreement between the CPA and the client, to
the contrary, unless such documents are required to be
produced through subpoena issued by any court,
tribunal, or government regulatory or administrative
body.”
Activity: Watch a video on “Audit Working Papers” – (8:53)