When preparing audit working papers, the auditor should remember that working papers should be:
A) kept on the client's premises so that the client can have access to them for reference purposes.
B) the primary support for the financial report being audited.
C) considered as a part of the client's accounting records that are retained by the auditor.
D) designed to meet the circumstances and the auditor's needs on each engagement.

Question

Quizplus · Accepted Answer

Working papers should be designed to meet the specific circumstances and needs of each engagement. This includes documenting the auditor's understanding of the client's internal control system, performing analytical procedures, and testing account balances and transactions. While working papers may be considered as part of the client's accounting records that are retained by the auditor, they are primarily used as the basis for the auditor's opinion on the financial statements and should not be kept on the client's premises.

When Preparing Audit Working Papers, the Auditor Should Remember That