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Ca Ravi Taori
Working Papers (Master Answer)- Old Course -- (P16M/M16M/N17R/M21M/M21R/N22E)
QNO-- Importance/Purpose/ Advantages New Course – (SM25/M24M)
230.03
Bhaskar CNO SA230.040
Explain in briefly the utility of Working Papers to an auditor.
OR
Importance of Working Papers.
OR
Explain the advantages of Audit Working Papers.
OR
CAM is the engagement partner of S Ltd. He has instructed his audit team to maintain proper audit
documentation. The audit team members are not sure about the purpose for which the documentation
should be made. Explain the various purposes of audit documentation with reference to SA 230.
OR
Audit Working Papers are the record of audit procedures performed, relevant audit evidence obtained,
and conclusions the auditor reached. Explain stating meaning and advantages of working papers.
OR
What are audit working papers and why should they be carefully preserved by the Auditor?
OR
What is meant by audit documentation? What are objectives of an independent auditor in accordance
with SA 230?

Answer ➢ Audit Working Papers:
Meaning
As per SA 230 “Audit Documentation”, Audit Working Papers are the record of audit procedures
performed, relevant audit evidence obtained, and conclusions the audit or reached.

➢ Ownership of Working Papers:
Working papers are the property of the auditor and he may, at his discretion, make portions of or
extracts from his working papers to his client.

➢ Custody of Working Papers:
The auditor should adopter as on able procedures or safe custody and confidentiality of his
working papers

➢ Advantages of Audit Working Papers

Basic purpose
Working papers are the-
• Evidence that the audit was planned and performed in accordance with SAs and applicable
legal and regulatory requirements.
• Evidence of the auditor’s basis for a conclusion about the achievement of the overall
objective of the auditor; and

Additional purpose
• Besides they serve a number of additional purposes, including the following:
• Assisting the engagement team to plan and perform the audit.
• Assisting members of the engagement team responsible for super vision direct and
supervise the audit work, and to discharge their review responsibilities in
accordance with SA 220.
• Enabling the engagement team to be accountable for its work.
• Enabling the conduct of quality control reviews and inspections in accordance with
SQC 1.
• Enabling the conduct of external inspections in accordance with applicable legal,
regulatory or other requirements.
• Retaining a record of matters of continuing significance to future audits.

➢ Property
Standard on Quality Control (SQC) 1, “Quality Control for Firms that Perform Audits and Reviews of
Historical Financial Information, and Other Assurance and Related Services Engagements”, issued by
the Institute, provides that, unless otherwise specified by law or regulation, working papers are

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