Question

Which of the following statements is correct regarding the information generally included on a working paper?

1) Working papers should be cross-referenced between working papers indicating where further work and evidence was not performed.
2) Working papers should be initialed to identify the preparer of the working paper together with the date the working paper was prepared along with the reviewer and the date the working paper was reviewed.
3) Working papers should be initialed by client management to signify the review and acceptance of the working papers.
4) Working papers include a title identifying the year under audit and the preparer.

Answer 1

The correct statement regarding the information generally included on a working paper is statement 2.

The correct statement regarding the information generally included on a working paper is statement 2:

Working papers should be initialed to identify the preparer of the working paper together with the date the working paper was prepared along with the reviewer and the date the working paper was reviewed.

Working papers are an important part of the auditing process and provide documentation of the work performed. They help establish the reliability of financial statements and support the auditor's findings and conclusions.