The Working Papers are the most important documentary evidence of the Audit, their quality, their preparation, the requirements that they must meet, the attributes and properties are shown as a fundamental contribution of this article, which is part of a exhaustive investigation carried out by its authors as a result of the exercise of their profession linked to the audit activity.
In this we illustrate very clearly all the aforementioned elements to achieve very high quality Work Papers that specifically show the findings detected.
The working papers have to be headed according to their content, usually it is the head of the audit who heads them and in many cases it is he who begins the work on them to show his assistants how they should be carried out.
Once the audit is completed, the working papers are arranged in the corresponding audit work file.
They must be made in such a way that they allow:
- The systematic review of the development of the audit work by the head of the group, supervisions or the head of the body, as appropriate. That other auditors can continue the work interrupted for any reason, by the auditors who initiated the audit. Obtain the evidence of the significant conclusions and judgments that are issued in the audit reports by other auditors who have not had contact with the performed audit Provide sufficient information to the auditors who will carry out a new audit of the entity Allow the external auditors to review the same, either from state institutions or independent entities that are contracted.
Other important requirements:
- Contain the relevant, sufficient, competent and reasonable evidence of the verifications, verifications and investigations carried out by the auditors and their results that support the judgments and conclusions that are formulated in the report, as well as the notes and observations written, that allow the preparation of the report of the audit, ensuring that no additional information is required at the time of preparing the report.They must contain sufficient information that does not require additional explanations.They must be truthful and the calculations reflected in them must be exact.In the same they must consider the objectives, scope, programs, guides and methodology used in the audit, including methods and criteria used to determine the samples and obtain them.The origin or source of the information must be recorded so that the value of the evidence is established, in addition, the scope and limitations of the checks and investigations carried out must be reflected to indicate the degree of responsibility assumed by the auditor. In such a way that the rapid location of any information contained therein, for which they must be paginated in such a way that when detailed in the Control Sheet of the Audit File, it functions as an index.They must be organized in such a way that the quick location of any information contained in them, for which they must be paginated in such a way that when detailed in the Control Sheet of the Audit File, it functions as an index.They must be organized in such a way that the quick location of any information contained in them, for which they must be paginated in such a way that when detailed in the Control Sheet of the Audit File, it functions as an index.
Auditor Stamps
The stamps that have been enabled are the following:
- The identification stamp, whose objective is to facilitate the recognition of work papers, by containing the number of the work paper (PT), a subject covered by it, while including the date and the average signature of the acting auditor that The stamp of the auditor, whose objective is that when it is reflected in the documents that are reviewed, it is evidence that it has been verified by the auditor.
Auditor Marks
They are the symbols used by the auditor in order to leave a reliable record of the acts performed; allowing other authorized officials to know what actions were carried out.
Auditors necessarily have to have an arsenal of pre-established markups that indicate the checks and verifications performed on books, forms and other documents they examine, as evidence developed by the auditor who acted.
The marks that will be indicated below are indicative, and the acting auditors may use those with which they are most familiar, but in this case it is mandatory to record the marks used and their significance in the working papers, to allow other auditors to recognize the type of verifications and verifications carried out by those who acted on the documents being verified.
The brands indicated are the following:
It is mandatory to record in the P / T the marks that the auditor uses and their significance.
The following is a group of brands as an example of which the auditor can use.
| Brand | Meaning |
| W | Verification of calculations and sums. (Accuracy of mathematical operations) |
| 4 | Checking annotation in documents and records. Checked the registered operation against the original documents. |
| OR | Examination of passing from one register to another. |
| or | Physical proof check. |
| TO | Submajor test against the control account. Checked against the balance of the major. |
| OR | Group leader checks. |
| > | Supervisor checks. |
| v | In addition to non-compliance with the rules of the current accounting manual in the books, records, forms and other accounting and administrative documents. |
| (/) | In cases where the auditor has any observation regarding the verification carried out, the symbol must be placed before the stamped mark. |
Responsible: Group Leader and Auditors
Goals:
- Serve as a guide for the work, in which the auditors can consult and adapt to the conditions and characteristics of each entity. Helps organize and coordinate the audit review and execution phases. Provide information that serves as methodological preparation to all Accounting and Auditing professionals and other administrative and technical staff of the Organization. Standardize the preparation of working papers until they are filed in the Audit File. Fundamental element to summarize the opinion on the results of the audit and prepare the Final Report.
Standards:
In the execution of the audit, various documents can be used that support examinations, checks, requests, verifications, samples, calculations, in short, they can be evidence prepared by the auditor, or supplied internally by the auditee or by a third party, so that its presentation may not be limited to a single style.
However, standards have been established based on the need to standardize those prepared by the auditor, among which we cite the following:
- Work Papers of 3, 5, and more Columns. Notes Sheet “T” Accounts Documents of different transactions taken from the accounting and commercial systems established by the auditee to control and record the different economic events of the entity. Documents necessary to support the examinations carried out, prepared by the auditee. Other documents prepared by the auditor in carrying out certain actions in different stages of the Audit.
Risks:
- Failure to conduct the examination in accordance with generally accepted auditing standards. Failure to ensure the responsible and competent person about the reasonableness of the different financial statements. The auditor is not prepared to doubt the validity and completeness of the evidence. That the sample taken is not sufficient to support the results of the examination carried out and the fulfillment of the programmed objectives. Failure to evaluate the evidence applying reliable techniques that ensure its validity and reasonableness. Failure to identify the level of materiality and probable risk of evidence. The documentary evidence does not clearly express the objective of the scope of the checks carried out. The findings are not clearly defined and lack reasonableness to support the examination result,the conclusion and recommendation to demonstrate the nature and scope of the work performed. Don't limit yourself to matters that are relevant and important. The checks and their exposed results are not clear, understandable and detailed enough for a third party to be able to substantiate conclusions and recommendations through their review.
During Consulting engagements, internal auditors must consider the risk compatible with the objectives of the engagement and be alert to the existence of other significant risks, including:
- Detect an irregularity, and not follow the process to the end, including unsigned documents, unaccepted accounts, aging balances, there is a risk of not detecting the commission of a criminal act, conceive an action, and simply carry out the same, ignoring logical sequences of the investigation process, there is a risk of not detecting and exposing deficiencies
Internal auditors must incorporate the knowledge of risk obtained from Consulting work in the processes of identification, analysis and evaluation of significant risk exposures in the organization.
A complex application system includes a large number of procedures that may not leave a complete trace, therefore errors in the logic of an application program can be difficult to detect in a timely manner by manual procedures.
Controls:
All work papers are subject to control, both by the group leader and acting supervisors, which can be carried out both at the stage of the audit execution, or after it is finished. They are filed in the Audit File as established in the Organization that provides the service.
