Q3- Principles Of Auditing (ICAN ATSWA Sept 2021 Insight)

  

Question 3:

Which of the following should NOT be included in the audit working papers?   

A. Information about the organisation being  audited, including its recent history 

B. Evidence of work done in the course of the  audit 

C. Curriculum vitae of Directors of the client’s  company 

D. A means of planning the subsequent year’s  audit 

E. Schedules in support of the accounts  audited and summaries of the client’s books   

The correct answer is (C)

Past Question Review:

Audit working papers refer to the materials the  auditors prepare or obtain, and retain in connection with the performance of the audit  work. 

Working papers may be in the form of data stored on paper, file, electronic media or other media. 

Working papers include the following: 

• Information concerning the legal and organizational structure of the client company 

• Extracts or copies of important legal documents, agreements, and minutes 

• Evidence of the planning process including audit  programmes and any changes thereto 

• Evidence of the auditors understanding of the  accounting and internal control systems 

• Evidence of the inherent and control risk assessments and any revisions thereof 

• Evidence of the auditors consideration of the  work of internal audit and their conclusions  thereon 

• Analyses of transactions and balances 

• Analyses of significant ratios and trends 

• A record of the nature, timing and extent of  auditing procedures undertaken and the results  of such procedures. 

• Details of procedures regarding companies  whose financial statements are audited by  other auditors 

• Copies of communications with other auditors, expert and other third parties 

• Copies of correspondence with the entity, reports to management and note of discussions  with the entity’s management

• A summary of the significant aspects of the  audit including details of the information available, the amounts involved, management  views, the conclusions reached and how these matters are resolved or treated, and 

• Copies of the approved financial statements and the auditor’s report. 

So the correct answer is (C)

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