Examples of Work Papers

Below is a list of common work papers an auditor might prepare:

General Planning and Administrative Work Papers

• Audit plan . Detailed plan outlining the scope, objectives, timing, and procedures of the audit.

• Engagement letter . Agreement with the client, specifying the terms of the audit engagement.

• Audit risk assessment . Evaluation of the inherent, control, and detection risks for the engagement.

• Materiality assessment . Documentation of the levels of materiality for planning and evaluating findings.

• Client background information . Industry and business overview of the client.

• Preliminary analytical procedures . Analysis of financial data to identify areas of risk or unusual trends.

• Internal control questionnaire . Checklist or narrative documenting the understanding of internal controls.

Financial Statement Work Papers

• Trial balance . Reconciled client-provided trial balance with adjustments and reclassifications.

• Lead schedules . Summarized schedules for major financial statement line items.

• Supporting schedules . Detailed analysis for individual accounts (e.g., accounts receivable aging, fixed asset depreciation).

• Adjusting journal entries . Proposed journal entries to correct errors or adjust financial statements.

• Reclassification entries . Entries to properly classify accounts within the financial statements.

• Financial statement drafts . Preliminary drafts of the financial statements for review.

Audit Testing Work Papers

• Substantive testing schedules . Documentation of procedures performed and results of testing, such as:

  • Revenue testing

  • Expense testing

  • Inventory count and valuation

  • Accounts receivable confirmation procedures

  • Accounts payable cutoff testing

• Sampling documentation . Basis and methodology for sample selection and results.

• Control testing work papers . Evidence of testing the design and operating effectiveness of internal controls.

• Compliance checklists . Review of adherence to laws, regulations, and company policies.

Special Areas

• Fraud risk assessment . Documentation of brainstorming sessions and specific fraud risk factors.

• Related party transactions . Identification and review of related party agreements and disclosures.

• Going concern assessment . Evaluation of the entity’s ability to continue as a going concern.

• Contingencies and commitments . Review of legal matters, warranties, and other potential obligations.

• Tax compliance . Analysis of tax accounts and positions.

Other Work Papers

• Management representation letter . Signed statement from management confirming their responsibilities and assertions.

• Audit program . Step-by-step checklist of audit procedures for the engagement.

• Meeting notes . Records of meetings with management, audit committees, or other stakeholders.

• Documentation of judgments and estimates . Analysis of management’s significant accounting estimates.

• Issues log . Ongoing record of audit issues, queries, and resolutions.

• Subsequent events review . Analysis of events occurring after the balance sheet date that could affect the financial statements.

Conclusion Work Papers

• Summary of audit differences . Documentation of uncorrected misstatements and their impact on the financial statements.

• Final analytical review . High-level comparison of audited financial statements to expectations.

• Audit opinion draft . Preliminary wording for the audit opinion.

These work papers collectively provide the evidence necessary to support the audit conclusions and comply with professional and regulatory standards.

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Audit Working Papers