Definition: Audit working papers refer to the document in which the auditor writes facts, data, analysis of accounts while performing an audit of the enterprise. It is a written record that an auditor keeps relating to: Evidence found during the process of audit Methods and procedures that an...
On the basis of the discussion above, a good working paper should meet the requirements of ISA 230 by displaying the following characteristics: It should state a clear audit objective, usually in terms of an audit assertion (for example, ‘to ensure the compl...
For example, the group auditor may consider that an element of the financial statements of the company could be materially misstated, and that further audit evidence is necessary. The group auditor should determine the nature of the work necessary, and whether th...
【15】Audit documentation related to internal control over financial reporting includes the auditor’s understanding of the company’s internal controls and how the company’s operating system ensures that financial transactions are processed correctly. Such audit documentation could include, for example, ...
For example, of 108,034,700 returns filed by taxpayers in 1997, the IRS examined 1,662,641, or about 1.5 percent of the total number of returns. Despite this low number, several stories surfaced in the 1980s and 1990s regarding abuses by IRS officials, many of which occurred during ...
Solved Example For You: Question: State whether the working papers are the property of the client or auditor. Whether the client can demand custody of such working papers? Answer: – Working papers are the record of various audit procedures performed, audit evidence obtained, allocation of work ...
There are no detailed rules in this regard, as no two audits will be the same, and requirements will vary from one audit engagement to another (based, for example, on the size and complexity of the entity). However, ISA 230 clearly indicates that the quality of the audit documentation ...
■ As the investigation has come as a surprise it is possible that, for example:–the tax authority’s suspicions are unfounded;–Dedza has failed to recognise suspicious circumstances.Tutorial note: In either case, Dedza should seek clarification on the period of suspicion and review relevant ...
It examines the effect on review efficiency of knowledge differences and, specifically, the potential for specialization in review to leverage auditors' knowledge differences to increase review efficiency. Narrowing the scope of the review task, for example, by specialization, has the potential to ...
Effective writing relates to tone (Jones2011), though business managers use different tones in different disclosure practices (Huang et al.2013) and for various purposes – for example, Rogers et al. (2011) suggest optimistic language tempts greater litigation risk. Managers thus often use an opti...