The current file of the auditor’s working papers should generally include:
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Audit working papers are used to document the information gathered during an audit. They provide evidence that sufficient information was obtained by an auditor to support his or her opinion regarding the underlying financial statements. Working papers also provide evidence that an audit was properly planned and supervised. They should contain sufficient information for an auditor who did not work on an audit to discern the reasons for the opinion given regarding a client's financial statements. The forms of documentation that may be contained within the working papers include the following: Show
In addition, there may be extensive cross referencing between the documents contained within the working papers. Several software providers sell off-the-shelf software that creates electronic versions of working papers, so that auditors are not as burdened by the volume of paperwork commonly found in a traditional audit. Who Prepares Audit Working Papers?Audit working papers are prepared by the audit staff and audit seniors, and are reviewed by audit senior managers and partners. If a reviewer finds that any issues have not yet been addressed, then these issues are delegated to the on-site audit team for action. Reviewers sign and date each page examined. Once an audit has been concluded, the audit working papers are considered legal evidence, and so are appropriately indexed and filed. At a minimum, the working papers will likely be reviewed the next year by the assigned audit senior or manager, who will want to understand any issues found in the prior year, and also to determine if there are any ways to budget the audit staff's time more effectively. Which of the following factors would least likely affect the quantity and content of an auditor’s working papersWhich of the following statement is true regarding an auditor’s working papers?Which of the following statement best describes the understanding with respect to ownership and custody of working papers prepared by an auditor?The current file of the auditor’s working papers, generally, should includeFor example, the SEC requires auditors to retain, in addition to documentation required by this standard, memoranda, correspondence, communications (for example, electronic mail), other documents, and records (in the form of paper, electronic, or other media) that are created, sent, or received in connection with an engagement conducted in accordance with auditing and related professional practice standards and that contain conclusions, opinions, analyses, or data related to the engagement. (Retention of Audit and Review Records, 17 CFR §210.2-06, effective for audits or reviews completed on or after October 31, 2003.) Our sites
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Microsoft has responded to a list of concerns regarding its ongoing $68bn attempt to buy Activision Blizzard, as raised by the UK's Competition and Markets Authority (CMA), and come up with an interesting statistic. In response to continued questions over whether Microsoft owning Call of Duty would unfairly hobble PlayStation, Microsoft claimed that every COD player on PlayStation could move over to Xbox, and Sony's playerbase would still remain "significantly larger" than its own. Microsoft does not go into detail on its mental arithmetic here, but does note elswhere in its comments that PlayStation currently has a console install base of 150 million, compared to Xbox's install base of 63.7 million. Watch on YouTube Eurogamer Newscast: Are CD Projekt's Cyberpunk and Witcher plans too ambitious?That claim is part of a range of comments given to Eurogamer sister site GamesIndustry.biz in response to the CMA's latest report, which otherwise mostly repeats many of the same concerns raised by the UK regulator - and others around the world - already. For those following the case, the CMA's latest intervention will not come as a surprise - it is the next step on the regulator's recent roadmap for how and when it will weigh in with its final ruling. This month, we were due the CMA's October "issues statement" - and it seems that this is the document to which Microsoft has now publicly responded. The usual topics are covered - surrounding the potential for the deal to harm competitors should Microsoft gain too much of an advantage owning Activision Blizzard franchises (mainly, Call of Duty) and therefore being able to leverage their brand power to become a dominant market leader in the console market and cloud streaming. Specifically, the CMA sees potential for the deal to harm Sony but also other streaming services such as Google (perhaps a moot point now), Amazon and Nvidia. "Having full control over this powerful catalogue, especially in light of Microsoft's already strong position in gaming consoles, operating systems, and cloud infrastructure, could result in Microsoft harming consumers by impairing Sony's – Microsoft's closest gaming rival – ability to compete," the CMA wrote, "as well as that of other existing rivals and potential new entrants who could otherwise bring healthy competition through innovative multi-game subscriptions and cloud gaming services." In response, Microsoft said such "unsupported theories of harm" were not enough to even warrant the CMA's current Phase 2 investigation - which was triggered on 1st September. "The suggestion that the incumbent market leader, with clear and enduring market power, could be foreclosed by the third largest provider as a result of losing access to one title is not credible," Microsoft told GamesIndustry.biz. "While Sony may not welcome increased competition, it has the ability to adapt and compete. Gamers will ultimately benefit from this increased competition and choice. "Should any consumers decide to switch from a gaming platform that does not give them a choice as to how to pay for new games (PlayStation) to one that does (Xbox), then that is the sort of consumer switching behavior that the CMA should consider welfare enhancing and indeed encourage. It is not something that the CMA should be trying to prevent." The CMA is due to notify Microsoft of its provisional findings in January 2023, at which point it can seek possible remedies to any sticking points raised. The regulator's final report - and overall ruling - will then be published no later than 1st March next year. To see this content please enable targeting cookies. Manage cookie settingsBecome a Eurogamer subscriber and get your first month for £1 Get your first month for £1 (normally £3.99) when you buy a Standard Eurogamer subscription. Enjoy ad-free browsing, merch discounts, our monthly letter from the editor, and show your support with a supporter-exclusive comment flair! What does an audit working paper generally include?Working papers are records kept by the auditor of the procedures applied, the tests performed, the information obtained, and the pertinent conclusions reached in the engagement.
What is included in current working paper file?Institute of Chartered Accountants of India defines audit working paper as, “working paper must include audit program, queries, explanations given for the queries, schedules for the important items like depreciation, inventories, confirmation from third parties, certificates issued by the management, banks,etc..”.
What does an audit working paper generally include quizlet?Audit working papers should provide primary support from the client's financial statements. Audit working papers generally provide evidence of compliance with planning and risk assessment requirements of an audit, but not of performing further audit procedures.
What records may be included in audit working papers?It includes information like financial statements and audit report of the entity, trial balance and worksheets, records regarding internal control risk of an entity, external confirmations received, queries of auditor and reply received from the management etc.
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