Vani Pandey

WORKPAPER DOCUMENTATION

DEFINING THE NECESSARY AND NATURE OF AUDIT WORKPAPERS

Workpapers are the direct end product of the internal audit staff’s work and effort. The workpapers demonstrate what was done – what was found – and what was confirmed. Elected officials, news media and the public in many instances only see, or rather ask to see the end product of the internal audit effort - the three or four paragraph report. The workpapers are usually ever examined, and the effort is usually never ever sees the light of day. That is until the documentation comes into question – either by the commissioners’ court – by the district attorney – and/ or by a court of review or inquiry.

Internal audit workpapers provide various levels of usefulness:

A. During the audit adequately prepared workpapers provide

1. Guidance as to the objective of the examination

2. Guidance as to the sequence of steps and development of assurance

3. Documentation that the office being evaluated has conformed to statutory requirements

4. Documentation that accounting policies and procedures are being conform with, and

5. Documentation that the county auditor’s office has performed the duties of the office as required by existing state statutes.

B. After the audit is completed the workpapers provide

1. Evidence that support the findings as reported

2. Evidence that the internal audit was performed following established and accepted methodology

3. Evidence concerning the need to conform to the state statutes

4. Evidence which can be relied on by the external auditors, and

5. In the event the auditee finds himself or herself in court trying to defend the findings, the workpapers provide an excellent defense...