Working Papers:-
The Audit working papers contain the basic records including audit programme, nature of queries
raised in course of audit, important information about the business of the company and audit
fi ndings. Such audit working papers help to locate audit fi ndings. The working papers are the
important aid in planning and performance of the cost audit. It facilitates the supervision and
review of the audit work. It also provides supporting evidence of the audit work performed. Audit
of working papers usually consist of:
(a) evidence obtained during the audit exercise;
(b) details of methods and procedures followed during such exercise; and
(c) conclusions derived by the cost auditor as regards objectives of the cost audit.
The working papers should record the cost audit plan, the timing, nature and extent of the audit
procedures performed and the conclusions derived from the evidence obtained. The working
papers serve as an important proof regarding the way evidence was found, analyzed and verifi able
conclusion drawn.
Whenever any question is raised or a clarifi cation is desired by the Central Government regarding any point, the cost auditor can reply properly if the audit working papers are properly kept. Such working papers will help the cost auditor in cost audit of that company during subsequent years also. The working papers should be cross-indexed in such a manner that required information could be obtained with minimum delay. The working papers may be arranged properly according to Para numbers of the Annexure to the Cost Audit Report Rules.
The audit working paper may be kept in two fi les – a “permanent” fi le for all the years and a
“variable” file for each year of audit. Thus copies of Memorandum of Association, Articles of
Association, collaboration agreement, process fl ow chart, cost manual etc. may belong to the
permanent file.
It is advisable that detailed comments on verifi cation of supporting statement are kept attached to
The Audit working papers contain the basic records including audit programme, nature of queries
raised in course of audit, important information about the business of the company and audit
fi ndings. Such audit working papers help to locate audit fi ndings. The working papers are the
important aid in planning and performance of the cost audit. It facilitates the supervision and
review of the audit work. It also provides supporting evidence of the audit work performed. Audit
of working papers usually consist of:
(a) evidence obtained during the audit exercise;
(b) details of methods and procedures followed during such exercise; and
(c) conclusions derived by the cost auditor as regards objectives of the cost audit.
The working papers should record the cost audit plan, the timing, nature and extent of the audit
procedures performed and the conclusions derived from the evidence obtained. The working
papers serve as an important proof regarding the way evidence was found, analyzed and verifi able
conclusion drawn.
Whenever any question is raised or a clarifi cation is desired by the Central Government regarding any point, the cost auditor can reply properly if the audit working papers are properly kept. Such working papers will help the cost auditor in cost audit of that company during subsequent years also. The working papers should be cross-indexed in such a manner that required information could be obtained with minimum delay. The working papers may be arranged properly according to Para numbers of the Annexure to the Cost Audit Report Rules.
The audit working paper may be kept in two fi les – a “permanent” fi le for all the years and a
“variable” file for each year of audit. Thus copies of Memorandum of Association, Articles of
Association, collaboration agreement, process fl ow chart, cost manual etc. may belong to the
permanent file.
It is advisable that detailed comments on verifi cation of supporting statement are kept attached to
that statement. This would enable the cost auditor to know at any time how a fi gure was arrived at,
what examination he made to satisfy himself, what queries he raised, what replies were received
and what comments he fi nally decided to put in his report.
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