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CS Professional · Internal and Forensic Audit · Internal Audit Tools and Techniques

During a stores audit at Kaveri Plastics Ltd, an internal auditor records the objective, procedures performed, evidence examined, conclusion and her sign-off on a single file. Which description best fits the primary purpose of this file?

The file is the audit working paper, whose main purpose is to support the findings and evidence the work performed. It records objectives, procedures, evidence and conclusions. It does not replace the audit report, and it is not meant only for the statutory auditor.

  1. AIt serves as the record that supports the audit findings and shows the work performedCorrect
  2. BIt replaces the need for a final internal audit report
  3. CIt is prepared only for the statutory auditor and not for the audit team
  4. DIt is a communication sent to the audit committee before fieldwork begins

Explanation

Working papers document the procedures performed, evidence obtained and conclusions reached, so they support the findings and the report. They do not replace the report, and they are used by the audit team and reviewers, not only the statutory auditor.

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