Page 200 - CA Inter Audit PARAM

Ca Ravi Taori
the property of the auditor. He may at his discretion, make portions of, or extracts from, working
papers available to clients, provided such disclosure does not undermine the validity of the work
performed, or, in the case of assurance engagements, the independence of the auditor or of his
personnel.

➢ Retention of working papers:
Working papers should be retained, long enough, fora period of time sufficient to meet the needs
of his practice and satisfy any legal or professional requirement of record retention. SQC 1
requires firm steamtables policies and procedures for the retention of engagement
documentation. The retention period for audit engagements ordinarily is no shorter than seven
years from the date of the auditor's report, or, if later, the date of the group auditor’s report.
Author’s Note
This is a master answer of Working Papers. Students are advised to write the appropriate part of the
answer as per the requirements of the question

Important matters to be recorded while documenting Old Course – (M21R)
QNO-- NTE of Audit Procedures
230.04
Bhaskar CNO SA230.080
While documenting the nature, timing and extent of audit procedures performed in case of audit of PQR Ltd,

explain the important matters its auditor should record.
Answer In documenting the nature, timing and extent of audit procedures performed, the auditor of PQR Ltd
shall record:
(i) The identifying characteristics of the specific items or matters tested.
(ii) Who performed the audit work and the date such work was completed; and
(iii) Who reviewed the audit work performed and the date and extent of such review.

Ownership of Working Old Course -- (P16M)
QNO--
230.05 Paper(Handover Case)
Bhaskar CNO SA230.200
M/s Health Zone, a partnership firm, running a nursing home have decided to discontinue you as an
auditor for the next year and requests you to handover all the relevant working papers of the previous
year.

OR
R.K. & Company are the auditors of PQR Company Ltd. The Managing Director of the Company demands
copies of the working papers from the auditors. Are the auditors bound to oblige the Managing Director?
Answer ➢ Ownership of Working Papers:
• As per SA 230 on “Audit Documentations” the working papers are the property of the
auditor and the audit or has right to retain them. He maya this discretion can make
available working papers to his client. The auditor should retain them long enough to
meet the needs of his practice and legal or professional requirement.
• Working papers are the important records of the auditor. They serve as evidence of the
auditor’s exercise of due care and conclusion reached regarding significant matters. The
client does no have a right to access the working papers and it is up to the discretion of
the audit or to make them available or not to others including the client.

➢ Conclusion
Hence in the instant case, management of M/s Health Zone can’t in sist up on the auditor to
handover the working papers of the previous year.

Ownership of Working Paper Branch Auditor Vs Old Course - (P16M/N19E/M21M)
QNO--
230.07 Company Auditor New Course - (S24M)
Bhaskar CNO SA230.200
CA N, statutory auditor of QST Limited, appointed for a term of 5 years has completed audit for the first
financial year ending on 31st March 2024. In compliance with requirements of professional standards, an
audit file has been assembled. After about a period of six months from date of issue of audit report, he

www.auditguru.in 6.3