audit-workpaper

Reference Files

• references/assertions-by-area.md - Maps each financial statement area (AR, revenue, AP, cash, inventory, fixed assets, debt, equity, accruals) to standard assertions and typical audit procedures. Read this in Step 1 when selecting assertions and in Step 4 when designing procedures for the account being tested.

Overview

Based on "Auditing and Assurance Services" by Arens, Elder, and Beasley - the standard reference for audit methodology. A workpaper is not a record of what you did; it is evidence that you did sufficient, appropriate work to support your conclusion. The reviewer should be able to pick up the workpaper, understand the objective, trace every tick mark back to a source document, and evaluate the conclusion - without asking the preparer a single question.

PCAOB AS 1215 and AICPA AU-C 230 both require that workpapers be complete enough to allow an experienced auditor with no prior connection to the engagement to understand the work performed.

Workflow

Step 1: Write the workpaper header

Every workpaper starts with a standard header that identifies what it covers and where it lives in the audit file.