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Qualities of good working papers:
· It should state a clear audit objective, usually in terms of an audit assertion (for example, ‘to ensure the completeness of trade creditors’).
· It should fully state the year/period end (e.g. 31 March 2016), so that the working paper is not confused with documentation belonging to a different year/period.
· It should state the full extent of the test (i.e. how many items were tested and how this number was determined). This will enable the preparer, and any subsequent reviewers, to determine the sufficiency of the audit evidence provided by the working paper.
· Where there is necessary reference to another working paper, the full reference of that other working paper must be given. A statement that details of testing can be found on ‘another working paper’ is insufficient.
· The working paper should clearly and objectively state the results of the test, without bias, and based on the facts documented.
· The conclusions reached should be consistent with the results of the test and should be able to withstand independent scrutiny.
· The working paper should be clearly referenced so that it can be filed appropriately and found easily when required at a later date.
· It should be signed by the person who prepares it so that queries can be directed to the appropriate person.
· It should be signed and dated by any person who reviews it, in order to meet the quality control requirements of the review.
