Which statement best describes the purpose of audit working papers?
Correct answer: B. They document the audit work, evidence and conclusions
- A. They replace the entity’s permanent accounting records
- B. They document the audit work, evidence and conclusions
- C. They serve as the entity’s official financial statements
- D. They provide management with a complete operating manual
Explanation
Working papers record the procedures performed, evidence obtained and conclusions reached by the auditor. They support supervision, review and the auditor’s opinion, but they do not replace the client’s accounting records.
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About Auditing
Auditing examines accounting records and financial statements to determine whether they present a reliable and fairly stated position. The subject covers audit objectives, internal controls, audit evidence, materiality, vouching, verification, working papers, auditor independence, audit reports, and the distinction between an audit and accounting or investigation.
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