Question

Which of the following is not an advantage of the preparation of audit working paper?

• A. To provide a basis for review of audit work
• B. To provide a basis for subsequent audits
• C. To ensure audit work is being carried out as per program
• D. To provide a guide for advising another client on similar issues

Answer 1

Answer: (D)

To provide a guide for advising another client on similar issues

Importance of working papers :
Working papers are important because they are necessary for audit quality control purposes. It provides assurance that the work delegated by the audit partner has been properly completed as per audit program. In future if client files any suit against the auditor for negligence then such papers are useful for auditor to defend himself as working papers are the property of auditor and remains with him. It provides evidence that an effective audit has been carried out.