� “The skill of an accountant can always be ascertained by an inspection of his working papers.”— Robert H. Montgomery, Montgomery’s Auditing, 1912

� Why? Because AAS 3 says so!!

� Evidence of audit done� Evidence of audit done� Planning and performance of audit� Aid in supervision and review� Proof of compliance with standards� Should be able to refer to it anytime in future

� Not documented not done

� Peer review audit

� Clarity and Understanding

� Completeness and Accuracy

� Pertinence

� Logical Arrangement

� Legibility and Neatness � Legibility and Neatness

� Safety

� Initial and Date

� Summary of conclusions

� Filing/keeping of working papers� Checklist of documents to be obtained and

maintained� Indexing of documents/ working papers� Proper numbering/ sequencing of working papers� Summarizing of overall findings� Writing of queries� Writing of queries� Discussing with seniors on matters of importance� Disposing of Query -at staff level/ senior level/ partner level� Working papers to be signed, dated and approved by relevant

level of audit staff with sufficient cross reference� Depicting the client’s name, file number, accounting period,

subject of working paper and reference of working paper withcurrent or permanent file

� As per the excel sheet attached

� The list has been made specifically for statutory audit

� Appointment is to be notified to ROC – 23B

� Request from company to confirm willingness to act as auditors

� Confirmation to act as auditors and within limits prescribed under 224(1)(b)prescribed under 224(1)(b)

� Intimation by company as appointment

� Acceptance of appointment

� Form 23B filing

� Engagement letter

� Understanding the clients business

� Audit materiality computation� 1% of turnover or assets, whichever is relevant

� Understanding and testing internal controls� Should obtain a copy of internal audit report on file.

Also should obtain a cost audit report on file, if applicable.� Also should obtain a cost audit report on file, if applicable.

� Audit strategies memorandum� Scope of engagement� Control environment� Risks noted during our internal control review� Significant events during the year� Audit materiality

� Lead schedules (Final leading to the main balance sheet)

� Detailed trial balance summing up to lead schedule

� Checklists

Work papers + supporting documentation + noting of � Work papers + supporting documentation + noting of work done on the documents

� Numbering and cross referencing

� Signing off by preparer and reviewer

� Completion of review points raised by partner

� Complete set of financial statements with scheduleslinked to the trial balance – disclosure as per revisedSchedule VI.

� Audit report and CARO report� Audit report and CARO report

� Checklists – Accounting standards compliances,Schedule VI checklist and CARO checklist completedand signed off by partner

� Summary review memorandum

� Letter to management

� Letter of representation

� Scope of engagement

� Impact of significant events during the year

� Significant auditing and accounting issues

� Reasons of major variances in different items ofBalance sheet and profit and loss accountBalance sheet and profit and loss account

� Internal control weaknesses observed

� Contingent liabilities and commitments

� Post balance sheet events

� Conclusion of audit

� Highlighting important issues noted during the course of audit to the management –� Accounting and audit issues

� Internal control issues

� Recommendations on improvement of existing controls� Recommendations on improvement of existing controls

� Any other important non compliance

� Important value adding services can be rendered by way of letter to management

� Management representation� Additional audit evidence

� Acknowledgement of management of its responsibilities of the financial statements

� Standard format for representation� Standard format for representation

� Signed copies of financial statements to be on file + signed audit report

� Signed Letter of representation on file

� File properly numbered, cross referenced and signed off by partners – hard copy filing to completeoff by partners – hard copy filing to complete

� Soft copies of final financial statements. Audit report and other audit documentation to be stored on final folder on MS Data

� Tax audit� Final tax audit report with annexures� Tax audit checklist� Tax audit work papers

� Tax return� Tax return� Final computation signed off by preparer and partner +

tax partner� ITR copy� ITR acknowdgement – signed

� Separate file to be prepared for the above

� Soft copies to be stored on MS data relevant folder