Preparing working papers is an integral part of a financial statement audit.

Required:

1.

a. What are the purposes or functions of audit working papers?

b. What records may be included in audit working papers?

2. What factors affect the auditor's judgment about the type and content of working papers appropriate for a particular engagement?
3. Discuss the relationship between audit working papers and each of the standards of field work.
4. You are instructing an inexperienced staff member whose first auditing assignment is to audit 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 information and notations that the staff member should include in the account analysis to provide an adequate working paper as evidence of work accomplished. (Do not include a description of auditing procedures applicable to the account.)