An important part of every examination of financial statements is the preparation of audit working papers.

Required

a. Discuss the relationship of audit working papers to the standards of field work.

b. You are instructing an inexperienced staffman on his first auditing assignment. He is to examine an account. An analysis of the account has been prepared by the client for inclusion in the audit working papers. Prepare a list of the comments, commentaries and notations that the staffman should make or have made on the account analysis to provide an adequate working paper as evidence of his examination. (Do not include a description of auditing procedures applicable to the account.)