Share
Explore BrainMass

Audit working papers

These all need to be based on the United States

1)Explain the nature and purpose of audit working papers and identify one of the four major types
2)Why is it considered necessary for a successor auditor to communicate with a predecessor audit?
3)Why is it necessary for auditors to determine whether they have the competence to complete an engagement before accepting it?
4)Why is it important for an auditor to evaluate independence in deciding whether to accept a new client?
5) What is an engagement letter and what are the purposes of it ?

Solution Preview

1)Explain the nature and purpose of audit working papers and identify one of the four major types.

The audit working papers are the documents that an auditor compiles while they are in the process of conducting the actual audit. The working papers are utilized to compile the entire audit along with other documentation that the auditor may obtain from the company being audited or documents the auditor has obtained themselves, such as banking documents.

One type of audit working papers are systems documentation. This documentation includes flowcharts, checklists, and questionnaires that have been completed. "This documentation is as follows: System Description, Flowcharts or Dataflow diagrams, Risk and Control Analysis". Source: http://internalaudit.curtin.edu.au/manual/part5.cfm

2)Why is it considered necessary for a successor auditor to communicate with a predecessor audit?

It is necessary for a successor auditor to communicate with a predecessor audit ...

Solution Summary

This solution discusses audit working papers.

$2.19