Audit Procedures and Working Papers: Key Concepts

Working Papers

These are the documents in which the auditor records the data and information obtained during their review, as well as the results of the tests performed.

Summary Warrant

A sample of major accounts that are an item.

Worksheet

This is the card that shows the groups or items that comprise the financial statements.

Decree of Detail

The items that comprise an account balance of a major account or any other account.

Certificates of Verification

The work performed to verify the correctness of an item or transaction.

Situations for Audit Work Plan

• Ensure that the service is clearly controlled.
• Be fully aware of what is being offered.

Conditions to Perform the Audit

• Maintain independence of mind regarding the specific client.
• Possess the ability to solve the specific problem that the company will present due to its specific characteristics.

Plan

This involves deciding beforehand the audit procedures to be used, the extent to which such evidence will be given, the opportunity in which it will be implemented, and the working papers that will record the results.

Aspects of Audit Planning

1. Investigation of general and particular aspects of the company to consider.
2. Survey and evaluation of internal control.
3. Programming of specifically applicable detail work.

General Research in an Audit Work

This tends to determine the fundamental and specific aspects of the company, which distinguish and relate to our audit work.

Disclaimer

A partial exception to some of the assertions made in the Certified Public Accountant's (CPA) audit opinion, generally referring to a disagreement or doubt regarding a counted item.

Preliminary Audit

This must be carried out during the last months of the year under examination.

Final Audit

This must be carried out in the days immediately following the close of that year.

Internal Control

The system of organization that has implemented procedures and staff counts.

Meaning of the Assessment of Internal Control

This is the impression that the CPA has regarding whether the internal control is good or bad, that is, if it is allowed to fully achieve its objectives or not.

General Objective of the Audit

To determine the correctness of the figures shown in the financial statements.

Elements for Audit Work Performed

• The selection tests.
• The relative importance.
• The common procedures.