[Link]
com/document/207865706/Audit-Working-Papers
Reviewing Working Papers
Why review working papers?
Regardless of the form they take - either electronic or paper - the review of working papers bythe audit team leader (and/or o
Working papers are reviewed for a number of reasons including:
ensuring that audit work has been carried out in compliance with TB and IIAstandards for internal
ensuring conformity with departmental or audit group policies and procedures bothfor audit work and the preparation of wor
Care - and professional judgment
confirming that intended audit work has been completed
confirming that the evidence gathered and analyses performed support theconclusions reached
confirming that the necessary consultations with auditee management were carriedout, recorded and that differences were re
ensuring that all significant risks, issues, observations and concerns raised(including possible irregularities) during the audit ha
A very important secondary result of the review of the working papers prepared byauditors is the opportunity it provides for o
Documentation of the Review - Review Notes
During the review of working papers, the reviewer should physically indicate that the papers have been reviewed. This is norm
Any questions the reviewer has concerning the material reviewed should be documentedas "review notes" to be answered by
Standards for Working Papers
Internal audit groups should have standards for the format and arrangement of working papers (hardcopy and/or electronic) a
the requirements for headings and identifiers
organization of the file; and
indexing and cross referencing requirements
This allows auditors to concentrate on the content of the papers and the recording ofessential information rather than struggl
Standards should also address:
the requirements for permanent files - office files vice working files
the retention requirements
the safeguarding of working papers
requirements for clean-up at the end of an audit
requests for information under the provisions of the Access to Information Act
Characteristics of Working Papers
In general working papers should be:
Neat and uniform in layout (standards and automation will help)
Accurate
Clear, concise, simple and understandable
Summarize where possible
Relevant to the audit objective or criteria and material - think economically, ask thefollowing:
Is this stuff important or crucial to my conclusions and /or findings?
Do I need a complete copy of the directive?
Do I need this transaction listing?
Do I need this schedule?
Is the material useful for future audit work?
Complete - ask the following:
Are there any obvious unanswered questions?
Are all loose ends tied up?
Have I answered all the review notes?
Logically arranged
Reviewers should make a written record (review notes) of questions arising from
the review process. When clearing these notes, care should be taken to ensure
the working papers provide adequate evidence that questions raised in the
review process were resolved.
Methods for reviewing workpapers:
Review Sheet
Comment cards (these are the comments inserted in the documents - word or excel)
Tack Changes Feature
bythe audit team leader (and/or others), and the documentation of that review, providevisible and tangible evidence that the performanc
work and the preparation of working papers
orded and that differences were resolved; and
irregularities) during the audit have been dealt withappropriately
s the opportunity it provides for on-the-job-training or the identification of futuretraining and development needs
have been reviewed. This is normally done by placing the initials of the reviewerand the date of the review on the paper - electronic work
"review notes" to be answered by the author of the working papers. The responsesshould also be documented. Most audit shops have sta
ers (hardcopy and/or electronic) and should address such things as:
al information rather than struggling with format concerns
evidence that the performance standard 2340 - EngagementSupervision - has been complied with.
on the paper - electronic working papers usually provide asimilar feature
ted. Most audit shops have standard approaches to dealing withreview notes. Again electronic working papers usually have facilities for de
ers usually have facilities for dealing withreview notes
Review Guide Questions
Ref.
Legen Key Considerations YES NO
d Reviewing working papers at the end of the planning phase of the
audit
Have we understood and adequately documented the following:
a. Organizational mandate and areas to be audited (involves selection of
laws, regulations and policies applicable)?
b. Mgt controls for mgt audit (aims to evaluate the effectiveness of mgt
controls)?
c. Mandate of the LGU, for operations audit (objective of the LGU and
focus on the output or outcome)?
d. the internal controls, objectives, accountability, operating and support
systems and processes?
Does the walkthrough enables the auditor to determine the following:
a. Identified controls ,
b. compliance with LRRPs
c. can be implemented as designed
d. can achieve control objective
e. can achieve outcome and outputs
Have we adequately documented the key systems and controls?
Have we documented the key management interviews?
Have we adequately documented our consideration of previous internal
and external audit or other review work?
Have we documented our consideration of senior management and/or
central agency concerns?
Have we adequately documented the issues to be considered?
Have we documented the logic of our decisions to include or exclude
issues?
Have we documented the disposition of the issue considered?
Have we documented our interviews with auditee management on the
intented audit plan?
Have we documented the results of any discussions we have had with our
own management team, the audit committee or clients?
Do the working papers contain a copy of our final audit plan?
Do the working papers contents, format and cross-referencing conform to
our standards for working papers?
Does the planning phase answer the following questions:
a. Are the control components sufficient to safeguard the assets?
b. Do they provide accurate and reliable accounting data?
c. Do they adhere to managerial policies?
D. Are they in compliance with laws, rules, and regulations?
e. Do they ensure the effectiveness, efficiency, economy, and ethicality of
operations?
Reviewing working papers at the end of the conduct phase of the
audit
Key Considerations
Are audit objectives met as reflected in the audit findings and
recommendations?
Are findings and recommendations based on facts and subtantial evidence,
and in compliance with relevant laws, rules & ®ulations?
Findings and recommendations promote the adequacy of internal control
under NGICS and relevant rules and regulations?
Do the working papers contain copies of our audit programs?
Have we documented the key management interviews?
Have we adequately documented the execution of audit programs?
Have we adequately documented the subsequent analysis of the results of
carrying out the audit programs?
Have we adequately documented the discussions with supervisory staff or
management on our initial results?
Have we documented all of our observations and conclusions?
Have we documented the methods used to develop recommendations?
Have we documented our interviews with auditee management on the
intended audit observations and recommendations?
Have we adequately documented the disposition of all of the audit
observations and the logic behind those dispositions?
Have we documented the results of any discussions we have had with our
own management team, the audit committee or clients in relation to the
audit results?
Were all review notes addressed?
Do the working paper contents, format and cross-referencing conform to
our standards for working papers?
Reviewing working papers at the end of the reporting stage of the
audit
Have we included a copies of the draft report in the working papers?
Have we included a copies of any other reporting mechanisms in the
working papers?
Have we adequately documented any non-written reporting mechanisms
used?
Have we documented review notes or other feedback provided by our
audit management team on our reporting mechanisms?
Have we included copies of any management responses or feedback we
received
Have we adequately documented the reasons for any changes made to our
reporting instrument? This includes the disposition of audit observations
subsequently dropped from the report.
Have we included copies of the management action plan?
Have we documented the assessment of the quality of the management
action plan?
Have we documented the consideration of the audit results by the audit
committee?
Have we documented any audit follow-up cosiderations?
Do the working papers contain a copy of our final audit report?
Do the working paper contents, format and cross-referencing conform to
our standards for working papers?
Important Note:
Items tested should never be left blank, either the results of the test
should be documented, the attribute should be marked as not applicable,
or an explanation should be provided as to why the test could not be
performed. Explanations should be provided to show why items marked
"N/A" are not applicable.
References (Legend):
[Link]
Training on Internal Control, Internal Audit and Other PFM Matters,
Overview of the Audit Process
Internal Audit Manual for LGUs, 2023
s
WP Ref Notes
WP Ref Notes
Review Guide Questions:
Once an audit engagement is completed, all working papers have to be finalized, organized and stored
properly in hard or softcopies or both, with a back-up plan in case of loss of document. A complete
documentation of the audit conducted is necessary since this serves as the auditor’s primary source of suppo
in communicating the results thereof.
Ref: Atty's PPT during the formalization of archiving completed audit engagements
Key Considerations YES NO WP Ref
1 Is every working paper complete and final?
Are all final working papers signed and dated by
2 both the Preparer/s, reviewer/s and approver?
Are the contents and presentation of the individual
3 working papers:
Complete?
With tick-mark notations?
With Correct cross-referencing?
Are all forms and working papers properly and
4 correctly indexed?
Are working papers assembled and filed in a
manner that clearly establishes the linkage
between the Internal Audit Report and supporting
5 working papers, in all phases of the audit?
Is the end result of organized working papers shows
6 a complete collection of the documentation of:
Procedures completed?
information obtained?
Conclusions reached?
Recommendations derived?
Logical basis for each of the steps?
organized and stored
ment. A complete
or’s primary source of support
Notes