Audit procedures and techniques. Working Papers

Home » Business » Accounting » Audit procedures and techniques. Working Papers
Accounting, Business No Comments

* Defining technical audit

* Definition of audit procedure

* Difference between technical and audit procedure

* Nature, scope and timing of application

* Practical examples

* Definition of work papers

* Objective and importance

* Preparation, content and overall structure

* Nature, confidentiality and ownership of working papers

* Classes workpapers

* Trademark of audit and benchmarking

* Files

* List of working papers with the techniques and procedures

* Conclusions

* Bibliography


Through this work, we will develop an overview of the techniques and audit procedures and working papers, observe the objectives and scope of Working Papers within the Audit in companies.

Through this vision we will create the basis for an analysis and study of the audit and financial management as a tool for finding errors and fraud in companies and different economic entities in the future where we labor as Public Accountants and Auditors.

* These are the practical methods of research and testing using the auditor to obtain the evidence necessary to substantiate their opinions and conclusions, its use is based on its discretion or judgment, depending on circumstances. It is a detailed method or procedure, essential in the successful practice of any science or art. In the audit. The techniques are methods available to obtain material evidence.

* DEFINITION OF TECHNICAL AUDIT Audit procedures are the set of research techniques applicable to an item or a group of facts or circumstances relating to the financial statements.

* DEFINITION audit procedure techniques are working tools and procedures CPA combination that makes these tools to a particular study.

The techniques and procedures are closely related. If the techniques are misguided, the audit will not meet accepted standards of performance.

* Difference between technique and Nature audit procedure refers to the type of procedure to be carried out, the scope is the scope given to the procedures, that is, the intensity and depth with practically applied. And regarding what the opportunity is the time to be applied to the study of procedures specific items.

* Nature, scope and application opportunity


By TASCOI TECHNICAL TASCOI audit team establishes the identity of the organization in use, in order to determine * the entity actually does,

* How to do it,

* To what does,

* Who are the owners

* What your customers

Construction information for the auditor obtained through interviews with managers of the audited entity. The TASCOI tool structure is: Transformation: Refers to activities the organization does on a day to day to produce their goods and / or services. Actors: Individuals or members of the organization who make the transformation. Suppliers or Providers: are the people who provide the resources, information and supplies to make the transformation. Customers or Users: Are all those people who are targeted products, goods or services that transforms the organization. Owners or Owners: Son who can decide changes in the transformation of the organization, such as manager, director, boards or councils. Involved: Those institutions that regulate environmental organizations transform or add value * PROCEDURE

Adjusting entries

The seats are made from time to time during the course of the audit, should be sufficiently extensive and detailed explanations for anyone who is not familiar with the transactions referred to, can understand. For example, there should be an entry that says “To adjust position of the three, SA”, but rather: “To correct charge an electric fan, billed as Three, SA of August 10, 2004, proof 861 “. This will ensure that if the customer requests the proof can be found for wrongly classified easily, whether you have filed alphabetically or numerically.

* These are the set of cards and reliable documentation containing the data and information obtained by the auditor in his review, and a description of the tests and the results thereof upon which supports the view that issues in signing the report.



The overall objective of the working papers is to help the auditor to properly ensure that an audit was made in accordance with generally accepted auditing standards. Working papers, since they correspond to the current year’s audit are a basis for planning the audit, a record of the accumulated evidence and test results, data to determine the appropriate type of audit report, and a base analysis for supervisors and partners.

The key objectives of the working papers are:

* Facilitate the preparation of the report.

* Check and explain in detail the views and findings outlined in the report.

* Provide information for the preparation of tax returns and report to agencies of state control and supervision.

* Coordinate and organize all phases of work.

* Provide a permanent historical record of the information considered and audit procedures.

* Provide guidance in subsequent revisions.

* Comply with the laws.

To perform the work in accordance with professional standards, the CPA must attach importance to the preparation of working papers. To fulfill this purpose, must first of all make a complete job and free of superfluous information and organizing paperwork in a way that facilitates quick location and easy understanding by others.

Working papers are considered complete when clearly reflect the significant data contained in the registers, the test methods used and the additional evidence necessary to form an opinion and report preparation. They must clearly identify the information and expressions of opinion or elements.

Any information or figures contained in the report of the public accountant must be supported in the working papers. As the work advances professional should consider the problems that can occur in the preparation of its report and anticipate include working papers, comments and explanations. It should do extensive explanatory comments to any return or analysis prepared for the job.

Working papers are not limited to quantitative information, therefore, should be included in them to record notes and explanations in full the work performed by the CPA, the reasons that he attended for follow certain procedures and omit others and their opinions regarding the quality of the information considered, the reasonableness of internal controls in place and the competence of those in charge of operations or records subject to revision.

These also should be reviewed by supervisors to determine the adequacy and efficiency of the auxiliary work under supervision. In such reviews, the working papers should speak for themselves, be complete, legible and organized systematically, so that unnecessary additional information and interpretations by those who prepared them.

Please note that many times, the report is prepared by the person who conducted the examination but by a supervisor, who must be able to fulfill its mission without the need to continually interrogate the assistant responsible for preparing papers job.




    * Client and exercise to review

    * Date

    * Name of the subject

    * Subject to the same

    * When the auditor mark or symbol is used to explain its meaning


    * Evidence that the financial statements and other information, on which will review the employee agrees with the records of the company.

    * Ratio of liabilities and assets, demonstrating how the auditor has evidence of their physical existence and valuation.

    * Analysis of income and expenditure figures that make up the income statement.

    * Evidence that the work was well executed, monitored, revised.

    * Form the system of internal control that the auditor has taken and the degree of confidence in that system and what is the scope made for substantive review evidence.

    * Details of the definitions or deviations in the internal control system and reaches conclusions.

    * Detail of setbacks at work and solutions to them.

    Must not contain:

    * Not be a copy of the company accounts

    * Not be copy of the financial statements

    * Not be a copy of the audit last year.


    Working papers should contain the following minimum requirements:

    * The name of the company subject to examination

    * Area to be reviewing

    * Date of audit

    * The signature or initials of the person who prepared the certificate and of those performing monitoring at different levels.

    * Date the card was prepared

    * A proper referral system within the set of working papers

    * Crossing the information indicating the leaves where the leaves come and go where

    * Trademarks of their respective audit and explanations

    * Source of getting information

    * The adjusted balances working papers of each card must match the analytical summary and these with the trial balance.


    * The information contained in the papers is required to audit

    * You can present this information in a better way

    * Should be given any more information to your understanding


  • Working papers are designed and organized to meet the circumstances and needs of the auditor for each audit in particular. The use of standardized working papers (eg, checklists, letters macho, standard organization of working papers) can improve the efficiency with which they are prepared and tested as such working papers. Facilitate the delegation of work while providing a means to control their quality.

    * Nature of the way that the books, records and documents supporting accounting and check balances and financial statements of companies, so the working papers are the basis of the opinion that the public accountant pays relative to the same balance sheets and financial statements.

    When a company discloses the results of its operations, it is always through the financial statements has been prepared, and not through the books and records or administrative procedures. The auditor’s report must be sufficient for the purpose of reporting therefore not disclose any confidential information obtained in the course of an audit professional except with the consent of the client.

    If the auditor’s report was challenged or refuted the professional can use-and in some cases-is forced to submit their working papers, as well as proof of his good faith, and the technical correctness of procedures to reach their opinion.



    Working papers are the property of the auditor, he prepared and are the material proof of work done, but this property is not unrestricted because it contains confidential information that may be considered, this must maintain absolute discretion regarding the information contained .

    That is, the working papers are the auditor, but is bound by professional secrecy which provides for any reason not to disclose the facts, information or circumstances that have knowledge in the exercise of their profession (unless authorized by him or interested and exception reports obliged establish relevant laws).



    They are usually rated from two points of view:

    For use

    * Roles of continuous use.

    * Papers temporary use.

    In its content

    * Worksheet.

    * Bonds summary or summary.

    * Bonds or descriptive detail.

    * Bonds analytical or testing.

    * Working papers may contain useful information for several years (articles of incorporation, contracts with longer maturities of one year or indefinite, organizational charts, charts of accounts, procedures manuals, etc.). For its more or less permanent utility to such papers are usually kept in a special case, particularly when the auditor’s services are required by several accounting periods.

    Just as working papers may contain useful information only for a given year (balance confirmations to a given date, fixed-term contracts of less than one year, bank reconciliations, etc.), In this case, such roles are grouped to integrate the audit record for the year to which they relate.

    * FOR USE:

    * For its content:

    Although design and content of working papers are as varied as the imagination, exist in the sequel of the audit work key papers whose content is more or less defined.

    Be classified according to the phase of the audit, either planning or execution of the work. Among these are:

    * Audit Planning

    * Worksheets

    * Bonds summary or summary

    * Bonds in detail

    * Bonds narratives

    * Certificates of findings

    * Certificates of notes

    * Certificates of brands

    Working papers prepared and / or provided by the audited area. Which include:

    * Financial Statements

    * Bank Reconciliations

    * Manuals

    * Organizational

    * Work Plans

    * Scheduling activities


  • Reports of Work

    Working papers from other sources. Are the documents prepared or obtained from independent sources the audited area. Some of these are:

    * Confirmation of balances

    * Authentic interpretations and regulations published

    * Orders Creation of units

    * Legal Opinions

    * Technical Reviews

    Ballots audit can be considered in two types:

    * Traditional.

    * Possible.

    The traditional, also called basic, are those whose nomenclature is standard and its use is very common and widely known; within these are the:

    * Cedulas summary. – What are summaries or concepts summary tables and / or figures homogeneous an account, item, area or operation.

    * Cedulas analytical. – They put the details of the concepts that make up a ballot summary.

    For example: the cedula summary of accounts receivable report, for homogeneous groups, the types of customers that have the entity subject to audit: wholesale customers, government customers, and the total balance for each group. Ballots will be analytical one for each type of customer, pointing to them as the balance is made up of each group.

    Eventual not obey any standard naming pattern and the names are assigned at the discretion of the auditor and may be bonds of observations, work program, certificates of adjusting entries, certificates of reclassifications, confirmations, letters of safeguard, certificates of recommendations, timing control audit, pending cases, and many more types of identity cards that might arise.


  • To facilitate the transcription and interpretation of the work performed in the audit, usually tend to use brands that allow transcription of a practical and easy to read some repetitive work. For example, the activity of comparing figures come from the auxiliary aids against them, they can leave transcribed on paper work, scoring a brand whose meaning was precisely to be checked against the corresponding figures on aid.

    In practice the use of trademarks of work is the most common and one hand facilitates transcription of work performed by the auditor performer, and another the interpretation of such work as the process of review by the supervisor.

    Also in practice because there are certain repetitive tasks in a consistent manner is decided periodically establish a brand standard, ie, a mark that means the same thing.

    The shape of the marks should be made as simple as possible yet distinctive, so there is no confusion between the different brands that are used in the workplace. Normally marks are transcribed using red or blue, in such a way that through color immediate identification is achieved in games in which they were recorded.

    Audit flags


    * Benchmarks

    For easy reference, the working papers are marked with indices clearly indicate the section of the file which should be filed, and therefore where they can be located when needed.

    In general the order they are given in the file is the same as presented in the financial statement accounts. So be the first box on those relating to accounts receivable then concluding with those referring to the expenditure accounts and balance sheet.

    The indices are assigned according to the above criteria and can be used for this purpose, numbers, letters or a combination of both.

    Below is an example of using the method alphabetical index-number to be the most widely used in the practice of auditing. In this system the simple letters indicate asset accounts, the double letters indicate liability and equity accounts and income statements indicate tens:

    The letter or number: For accounts of:

    E * TRADE AUDIT benchmarks for conservation work papers are recognized three types of files: permanent, comprehensive and current. The characteristics and uses of each type are as follows:


    * FILES

    Contain useful information for the auditor in future audit work to be of continuing interest and fulfill the following purposes:

    * Remember the auditor’s operations and / or items that apply for several years.

    * Provide new staff a quick summary of the policies, organization and functions of the different units of the Court of Accounts of the Republic and laws.

    Among the information that will contain the permanent file is:

    * Laws and regulations

    * Organizational

    * Policies and manuals

    * Details of key personnel of the Court


    Contain papers accumulated during the development of the audit and that can be used for subsequent periods. Among those are:

    * Financial Statements

    * AWPs

    * Audit Programs

    * Worksheets

    * Draft and final report of each review


    Accumulate all cards related to the different tests on each of the accounts or specific areas and for the period under examination. Constitute endorsement or evidence of each review and compliance auditing standards.*


    * The relationship between working papers with techniques and procedures, is that through these we will get the information and evidence necessary for proper development, as in the techniques we have: Ocular, verbal, written, Documentary, Inspection Physics. And the combination of two or more of these techniques or combination of two or more audit procedures audit programs derived and audit software package is called Audit Plan.



    To see the full picture select “Download job” from the top menu



    We emphasize the importance of the audit as a management tool for decision-making and to verify the weaknesses of the organizations to take measures and precautions in time.

    We note that the risk of the auditors and review conclusion focuses on the financial statements taken as a whole are presented fairly, when in fact they are not, this happens if the bases are taken (Working Papers), in order to support these conclusions , lack of technical and audit procedures, which give the necessary reliability.

    A job is recognized when it is quality for the audit to be considered by the administrator as necessary essential activity that audit reports are useful, relevant and reliable, which is achieved through proper application of techniques and procedures Audit in data collection.

    Therefore we conclude that the essential basis for a reliable audit is the proper application of knowledge and techniques and audit procedures in the preparation of working papers.