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(a) Reasons for Preparing audit working paper
• To obtain evidence of work done.
• To help train staff involved in audit.
• To help gather evidence in case of a catastrophe to launch an insurance claim.
• To assist KRA tax dues from the client.
• Working papers are used for future reference
• Form basis for audit opinion.
• To aid conduct of subsequent planning
(b)
(i)Types of information contained in a permanent audit file
• Memorandum and article of association/rules and regulations
• List of the companies responsible officers
• Statutory documents e.g. Company's act.
• List of the companies responsible officers
• Certificate of incorporation
• Tax certificate
• Company's registered office location
• Major agreements/contracts entered into.
• Management structures.
• Audit programmes.
• Engagement letter.
• Policies and procedure of the company
(ii) Types of information contained in a currant audit file
• Current financial statements
• Management representation letter.
• Audit work to be carried out.
• Updates on-policies and procedures of the company
• Updated engagement letter
• New legal agreements
• Working papers on all items in the financial statements.
Kavungya answered the question on May 14, 2019 at 13:28
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