How to write audit working paper!

Here’s an example of an audit working paper:

Client: XYZ Company
Audit Date: May 19, 2023
Prepared By: [Auditor’s Name]
Reviewed By: [Supervisor’s Name]

Objective:
The objective of this audit working paper is to document the procedures performed and the findings during the audit of XYZ Company’s financial statements for the fiscal year ending December 31, 2022.

Procedure:

1. Reviewed XYZ Company’s general ledger and trial balance for the year ended December 31, 2022.

2. Conducted tests of XYZ Company’s internal controls related to cash receipts and disbursements.

3. Verified the accuracy and existence of XYZ Company’s accounts receivable by selecting a sample and performing confirmations with customers.

4. Examined XYZ Company’s fixed asset register and physically inspected a sample of assets to verify existence and condition.

5. Reviewed XYZ Company’s bank reconciliation statements and conducted bank confirmations to verify cash balances.

6. Analyzed XYZ Company’s revenue recognition policies and procedures to assess compliance with accounting standards.

7. Assessed XYZ Company’s inventory management controls and performed physical counts to confirm the accuracy of inventory balances.

8. Reviewed XYZ Company’s accounting policies for revenue recognition, expense recognition, and depreciation methods.

Findings:

1. Cash receipts and disbursements controls were adequately designed and operating effectively.

2. Accounts receivable confirmation responses matched recorded balances, indicating accuracy.

3. Fixed assets were properly recorded and maintained, and no discrepancies were found during physical inspections.

4. Bank reconciliations and confirmations confirmed the accuracy of cash balances.

5. Revenue recognition policies were in compliance with accounting standards.

6. Inventory management controls were effective, and physical counts matched recorded balances.

7. Accounting policies for revenue recognition, expense recognition, and depreciation methods were consistent with industry standards.

Conclusion:

Based on the procedures performed and findings obtained, the audit of XYZ Company’s financial statements for the year ended December 31, 2022, indicates that the financial statements are presented fairly in all material respects, in accordance with accounting principles generally accepted in [relevant jurisdiction].

Note: This working paper is prepared for internal use only and may not be suitable for external distribution.

Please note that this is just a sample and the specific content and structure of an audit working paper may vary depending on the nature of the audit and the organization being audited.

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